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Tax Credit Savings Calculator

Last reviewed October 26, 2026 · By the Veritas Tax Credits editorial team (how we write and check) · Educational only, not tax advice

Enter your federal tax and a price per dollar of credit to see how much credit you could use under §38(c), what you would pay, and the difference. This is an estimate, not a quote.

Your numbers

Taxpayer typeNet regular federal tax for the year ($)Other general business credits you already earn ($)Price per $1 of credit (cents)Credit you plan to buy ($, optional)

Estimate

§38(c) limit with TMT = 0 (0.75 × tax + $6,250): $756,250
Room after your other credits: $756,250
Credit purchased: $756,250
Credit used this year: $756,250
Cash paid for the credit used: $695,750
Estimated federal tax reduced: $756,250
Estimated difference (tax reduced minus cash): $60,500 (8.7% of cash)

Estimate only, not a quote or tax advice. Assumes TMT is zero, no AMT, BEAT or state effects, and that the credit is allowed as claimed. Individuals should enter only the tax attributable to passive income, computed by a tax professional.

How the math works

Credit limit. §38(c)(1): net income tax minus the greater of tentative minimum tax or 25% of net regular tax above $25,000. The calculator assumes TMT is zero, so limit = 0.75 × tax + $6,250 (never more than the tax).
Individuals. The passive activity rules come first: enter only the tax attributable to passive income (why).
Savings. Credit used minus the cash paid for that credit. Unused credit carries over but is not counted as savings here.

Assumptions: no AMT, CAMT or BEAT, no other credits, no state tax effects, and the credit is allowed as claimed. Not tax advice. Prices are inputs you choose; they are not Veritas quotes.

Sources

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