Unlike corporations, pass-through entities are not subject to a corporation business tax. Consequently, they cannot claim the corporation business tax credits most states offer for creating jobs, researching and developing new products, acquiring new machinery and equipment, or making other types of investments and expenditures. Some states, however, extend these tax incentives to pass-through entities, allowing their owners and partners to claim credits against their personal income taxes.
To review the categories of tax credits and the specific tax credits available to pass-through entities under each category, click here to read the full report.
