Small Business B&O Tax Credit (Credit ID 815)

Businesses whose B&O tax liability is below a certain level are entitled to a credit. The credit varies depending on the amount of B&O tax due (the total of all classifications) after all other B&O tax credits have been taken. A small business B&O tax credit worksheet is available if you are file a paper return and are eligible for the credit. The credit is automatically calculated if you returns electronically.

B&O Tax Credit for Syrup Tax Paid (Credit ID 945)

A retailing business that pays syrup tax when buying carbonated beverage syrup to make carbonated fountain drinks can claim a B&O tax credit as of July 1, 2006. The credit increases each year. The following requirements must be met in order to take this B&O tax credit:

  • Syrup must be used by the buyer in making carbonated drinks sold by the buyer.
  • The credit must be claimed in the tax reporting period when the syrup was purchased.
  • Any unused credit may be carried forward to future reporting periods for a maximum of one year (12 months from the end of the tax reporting period when the credit was earned).
  • No credit may exceed the B&O tax due.
  • No refunds for credits.

The credit must be reported under the “Credits” section of the tax return when claimed.