Small businesses leave money on the table every year. Not because they don’t need it, but because they don’t know which tax credits exist.
Here is a complete list of small business tax credits available for 2026.
1. R&D Tax Credit
What it does: Offsets income tax liability for qualified research expenses
Who qualifies: Businesses that develop new or improved products, processes, or software
Maximum value: Varies based on qualified spending
Refundable? No for federal, but startups can elect to apply up to $500,000 against payroll taxes
Carryforward: 20 years
Deadline: Filed with annual tax return
Why small businesses miss it: Many assume R&D credits are only for tech companies or big corporations. In reality, small manufacturers, food scientists, architects, and even craft breweries qualify.
Beyond the federal level, small business tax credits 2026 also include state programs in Texas, Minnesota, and Virginia.
2. Work Opportunity Tax Credit (WOTC)
What it does: Credits for hiring individuals from targeted groups
Who qualifies: Employers hiring veterans, felons, SNAP recipients, SSI recipients, long-term unemployed, and other targeted groups
Maximum value: $2,400 to $9,600 per employee, depending on the target group
Refundable? No, but can offset regular tax liability
Deadline: File Form 8850 within 28 days of the employee’s start date
Why small businesses miss it: The 28-day certification window is tight. Many employers don’t know they need to file Form 8850 at all.
3. 179D Energy Efficient Commercial Buildings Deduction
What it does: Deduction for energy-efficient improvements to commercial buildings
Who qualifies: Building owners or tenants who install qualifying lighting, HVAC, or building envelope systems
Maximum value: Up to $5.81 per square foot for full compliance
Deadline: Filed with annual tax return
Why small businesses miss it: Small businesses often think 179D is only for large real estate developers. It’s not. Any commercial building owner qualifies.
Special note for architects and engineers: The Inflation Reduction Act allows designers of government-owned buildings to receive the deduction through an allocation process.
4. Employer Credit for Paid Family and Medical Leave
What it does: Credit for wages paid to employees on family or medical leave
Who qualifies: Employers with written policy providing at least 2 weeks of paid leave annually to qualifying employees
Maximum value: 12.5 to 25 percent of wages paid, depending on the leave percentage
Refundable? No
Deadline: Filed with annual tax return
Why small businesses miss it: Many small employers don’t have a formal paid leave policy. The credit requires a written policy in place.
5. Small Employer Health Reimbursement Arrangement (QSEHRA)
What it does: Reimburses employees for medical expenses and insurance premiums tax-free
Who qualifies: Employers with fewer than 50 full-time employees who do not offer a group health plan
Maximum value: For 2026, $6,450 for individuals, $13,100 for families
Deadline: Reimbursements made throughout the year
Why small businesses miss it: QSEHRA is often confused with HSAs or FSAs. It functions differently and has its own reporting requirements.
6. Disabled Access Credit
What it does: Credit for small businesses that make accessibility improvements for disabled individuals
Who qualifies: Businesses with 30 or fewer full-time employees or 1 million or less in gross receipts
Maximum value: 50 percent of eligible expenses over $250, up to $10,250 total, making the max value $5,000.
Deadline: Filed with annual tax return
Why small businesses miss it: The credit amount is relatively small compared to others, so many businesses don’t bother. But eligible expenses include ramps, signage, accessible checkout aisles, and website remediation.
7. State-Level Small Business Tax Credits (Vary by Location)
What it does: Additional R&D, hiring, and investment credits offered by individual states
Examples:
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Texas: R&D credit at 8.722%, refundable for small businesses
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Minnesota: R&D credit partially refundable at 25% for 2026
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Virginia: Small business R&D credit pool doubled to $15.77 million
Why small businesses miss it: Most small businesses focus on federal credits and forget to check their state program.
Summary Table of Small Business Tax Credits 2026
| Credit | Max Value | Refundable? | Key Deadline |
|---|---|---|---|
| R&D | Varies | No (payroll election available) | Annual return |
| WOTC | 2.4k – 9.6k per employee | No | 28 days from hire |
| 179D | Up to $5.81 per sq ft | No | Annual return |
| Paid FMLA | 12.5% – 25% of wages | No | Annual return |
| QSEHRA | $6.45k / $13.1k | N/A | Ongoing |
| Disabled Access | Up to $10.25k | No | Annual return |
| State Credits | Varies | Varies | Varies |
Bottom Line
Small businesses qualify for more tax credits than they realize. The R&D credit alone can be worth tens or hundreds of thousands for companies that don’t think they qualify.
The key is knowing what exists and documenting activities in real time.
Call (844) 463-2400 or email hello@indagotax.com to discuss which credits your business is missing.