Reference

Glossary

One sentence per term. If a topic page loses you, start here. Tick a term once you can explain it in your own words.

Terms you know0 / 39

Annual cap: The maximum amount of a credit that a taxpayer may claim in a single year.
At-risk rules: Limits preventing tax benefits larger than the amount you genuinely stand to lose.
Barrier removal: Deductible work that removes physical obstacles to access in a building.
Basis reduction: The drop in a property's tax cost caused by claiming certain credits.
Carryback: Applying an unused credit to a prior year's tax return for a refund.
Carryforward: Holding an unused credit to offset tax in a future year.
Certified historic structure: A building listed on the National Register or contributing to a registered district.
Certified rater: An accredited professional who verifies a building's energy performance.
Compliance period: The years an affordable housing property must keep meeting its rent and income limits.
Credit pricing: The cents-on-the-dollar amount an investor pays for a dollar of tax credit.
Disabled access credit: A credit for small businesses covering part of accessibility spending.
Domestic content bonus: An increase in a clean energy credit for using US-made materials.
Donor advised fund: A charitable account that is deducted when funded and granted out later.
Eligible small business: A business small enough by receipts or headcount to claim certain credits.
Energy community: A designated area whose projects earn an increased clean energy credit.
Energy efficient home credit: A per-unit credit for building qualifying energy-efficient dwellings.
Extended-use agreement: A recorded commitment keeping housing affordable beyond the compliance period.
General business credit: The combined limit and ordering system covering most business tax credits.
Grantor trust: A trust whose income is reported on the grantor's own return.
Investment tax credit: A credit equal to a percentage of the cost of qualifying energy equipment.
LIHTC: The Low-Income Housing Tax Credit, the main federal subsidy for affordable rental housing.
Mark-to-market: A trader election treating positions as sold at year end, with ordinary gains and losses.
Nonrefundable credit: A credit that can reduce tax to zero but will not be paid out beyond that.
Passive activity credit: A credit from a passive activity, usable only against tax on passive income.
Placed in service: The date property is ready and available for its intended use.
Prevailing wage: Required pay standards that can multiply certain energy incentives.
Qualified basis: The share of an affordable project's cost on which housing credits are computed.
Qualified rehabilitation expenditure: Restoration spending that counts toward the historic rehabilitation credit.
Recapture liability: The obligation to repay credits when a property falls out of compliance.
Refundable credit: A credit paid out in cash even when it exceeds the tax owed.
Rehabilitation credit: A credit equal to 20 percent of qualifying historic restoration costs.
Section 179D: A per-square-foot deduction for energy improvements in commercial buildings.
Special allowance: A limited exception letting active rental owners use otherwise passive benefits.
Substantial rehabilitation test: The requirement that rehab spending exceed the building's adjusted basis.
Syndication: Bringing in investors through a partnership to monetize tax credits.
Tax credit: An amount subtracted directly from the tax owed, dollar for dollar.
Tax-loss harvesting: Selling losing positions on purpose to offset gains and income.
Transferable credit: A credit that may be sold for cash to another taxpayer.
Wash sale: Repurchasing a substantially identical security within 30 days, disallowing the loss.