What to do with unused business credit

staciedavis80 — Tue, 24 Feb 2026 06:55:48 GMT

I have an unused business credit from tax year 2022 for employer paid family medical credit. It wouldn't let me use it for 2022 so what do I do with the unused business credit?

Re: What to do with unused business credit

KarenL4 — Wed, 26 Jul 2023 23:13:11 GMT

Hi,

All general business credits combined, including the family medical leave credit, may not exceed the taxpayer's net income tax over the greater of the tentative minimum tax (which is zero for C corporations after 2017), or 25% of the taxpayer's net regular tax liability that exceeds $25,000 (Sec. 38(c)(1)). However, if the sum of general business credits does exceed these amounts, the excess can be carried back one year and carried forward 20 years (Secs. 39(a)(1)(A) and (B)). Here is support for this information:

https://www.journalofaccountancy.com/issues/2018/dec/tax-credit-paid-family-medical-leave.html

Hope this helps. Please cheer by clicking the thumb icon in a post, and if this answers your question, select “Mark as best answer.”

Best,

Karen

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What to do with unused business credit

Re: What to do with unused business credit