Tax Credits
In recent years, corporations have used tax credits to reduce their taxable income to minimal levels - even zero. This has been done through foreign tax credits due to overseas investments and low income housing tax credits. Minimum of 100 words needed.
• Using one of the resources identified in this module to research tax issues, identify one tax credit currently available to corporations.
• What is required of the corporation to claim the tax credit?
• Discuss your opinion on the use of tax credits to minimize payment of taxes. Who benefits? Consider both the social impact and the boost to retained earnings.