Individual Income Tax Filing: Tax Credits: General Business Credit

GRBSCT • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

352,327.00

Year-over-Year Change

41.78%

Date Range

1/1/1999 - 1/1/2016

Summary

The General Business Credit (GBC) is a tax credit that allows businesses to reduce their federal income tax liability by claiming credits for certain investments and activities. This trend measures the total amount of GBC claimed on individual income tax returns.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The General Business Credit (GBC) is a collection of tax credits that incentivize businesses to undertake certain investments and activities, such as research and development, hiring members of targeted groups, and utilizing renewable energy. Tracking the total GBC claimed on individual tax returns provides insights into business investment and tax planning.

Methodology

The data is collected from individual income tax returns filed with the Internal Revenue Service (IRS).

Historical Context

The GBC trend is used by economists and policymakers to assess the effectiveness of various tax incentive programs and their impact on business investment and economic activity.

Key Facts

  • The GBC was first introduced in 1978 as part of the Revenue Act.
  • The total GBC claimed on individual tax returns was over $31 billion in 2020.
  • The GBC includes credits for research and development, renewable energy, and hiring from targeted groups.

FAQs

Q: What does this economic trend measure?

A: The General Business Credit (GBC) trend measures the total amount of business tax credits claimed on individual income tax returns filed with the IRS.

Q: Why is this trend relevant for users or analysts?

A: The GBC trend provides insights into business investment and tax planning, which are important for economists and policymakers in assessing the effectiveness of various tax incentive programs.

Q: How is this data collected or calculated?

A: The data is collected from individual income tax returns filed with the Internal Revenue Service (IRS).

Q: How is this trend used in economic policy?

A: Economists and policymakers use the GBC trend to evaluate the impact of tax incentives on business investment and economic activity, which can inform decisions about tax policy and economic development programs.

Q: Are there update delays or limitations?

A: The GBC data is subject to the typical delays associated with individual income tax return processing and publication by the IRS.

Related Trends

Citation

U.S. Federal Reserve, Individual Income Tax Filing: Tax Credits: General Business Credit (GRBSCT), retrieved from FRED.