Business tax credits are incentives provided by the government to encourage specific activities or investments by companies. These credits reduce the amount of tax a business owes, allowing them to keep more of their earnings. Common examples include credits for hiring employees from certain groups, investing in renewable energy, or conducting research and development. By utilizing business tax credits, companies can lower their overall tax burden, which can lead to increased cash flow and the ability to reinvest in their operations. This can ultimately stimulate economic growth and job creation, benefiting both the business and the wider community.