Tax Credit Capture — Glossary

Bonus depreciation lets firms deduct a percentage of qualified property in the first year, phased down from 100% under IRC section 168(k).

A working definition of Section 179 expensing for tax credit and fixed asset review firms, including annual limits, phase-out thresholds, and common election errors.

A cost segregation study reclassifies real property assets into shorter recovery periods, accelerating depreciation deductions under IRS rules for commercial property owners.

Qualified Research Expense (QRE) is the wage, supply, and contract cost pool that feeds the Section 41 R&D tax credit calculation. Learn what counts, what does not, and how practitioners build it.

A state-level hiring or investment tax credit for businesses operating in designated distressed areas, with carryforward rules and certification requirements that vary by jurisdiction.

The 179D energy deduction rewards building energy efficiency with tax deductions up to $5.00 per square foot for qualifying HVAC, lighting, and building envelope improvements.

The 45L credit under 26 U.S.C. section 45L rewards builders and developers of energy-efficient residential units with a per-unit tax credit tied to certification standards.

The four-part test under 26 U.S.C. section 41 defines which activities qualify for the federal R&D tax credit, and how practitioners document each element for exam defense.

The Section 41 R&D tax credit rewards qualified research spending with a dollar-for-dollar reduction in federal tax liability, not a deduction.

A federal income tax credit for employers who hire workers from specified target groups, administered by DOL and claimed through IRS Form 5884.