what is the general business credit 
the general business credit gbc is the aggregate value of individual tax credits a business claims during a tax year it consists of carryforward credits from previous years plus the current year s total business credits because it s a tax credit and not a tax deduction the amount comes directly off your tax bill if you claim multiple business tax credits on your tax return you must attach form 3800 general business credit along with the irs forms for the individual credits 1understanding the general business creditthe general business tax credit is unique in that it is not a single separate credit instead it s a collection of specific tax credits that promote various business activities including research oil recovery reforestation and starting a pension plan if you claim multiple business tax credits fill out the appropriate irs form for each tax credit and then carry over the total to form 3800 general business credit before filling out form 3800 you must first claim the individual tax credits on their relevant tax forms each calculated under its own set of rules next carry over the resulting combined credit to the general business credit form 3800 to determine the overall allowable credit while there are dozens of business tax credits some of the more common credits businesses claim include 2some tax credits have expiration dates be sure to check the instructions for each credit to make sure it s available for the applicable tax year 2the general business tax credit is a nonrefundable credit that directly reduces your tax bill however as a nonrefundable credit it can only reduce your tax liability to zero any credit amount that remains beyond that is automatically forfeited if you can t use part or all of the general business credit because of the tax liability limit you generally carry the unused credit back one year different rules apply for some credits including oil and gas production credits if you have an unused credit after carrying it back carry it forward to each of the 20 tax years after the year of the credit 5general business credits are treated on a first in first out fifo basis therefore the order you use credits in any tax year is 5general business credit limitationslike other tax credits the general business credit has limitations to calculate the limit that applies to you if one spouse has no current or unused credit the other spouse may use the entire 25 000 in determining their credit for the tax year 7