Many tax credits stretch back decades, signaling Congress’s ongoing desire to promote business investments in projects beneficial to local communities and society at large. In turn, businesses have been able to deduct all or a portion of those expenses from their income tax bill. In simplest terms, a $10,000 tax credit saves $10,000 that would otherwise be remitted to the federal government, while tax deductions merely lower a business’s taxable income by the percentage of its marginal tax bracket. Read the white paper.