Transition-metal centers are the active sites for many biological and inorganic chemical reactions. Notwithstanding this central importance, density-functional theory calculations based on generalized-gradient approximations often fail to describe energetics, multiplet structures, reaction barriers, and geometries around the active sites. We suggest here an alternative approach, derived from the Hubbard U correction to solid-state problems, that provides an excellent agreement with correlated-electron quantum chemistry calculations in test cases that range from the ground state of Fe2 and Fe − 2 to the addition-elimination of molecular hydrogen on FeO + . The Hubbard U is determined with a novel self-consistent procedure based on a linear-response approach.Transition metals are central to our understanding of many fundamental reactions, as active sites in naturallyexisting or synthetic molecules that range from metalloporphyrins and oxidoreductases [1] In this Letter, we argue that generalized gradient approximations (GGA) [8] augmented by a Hubbard U term [9], already very successful in the solid state [10,11], also greatly improve single-site or few-site energies, thanks to a more accurate description of self-and intraatomic interactions. Nevertheless, U is not a fitting parameter, but an intrinsic response property: as shown by Cococcioni and de Gironcoli [12], U measures the spurious curvature of the GGA energy functional as a function of occupations, and GGA+U largely recovers the piecewise-linear behavior of the exact ground-state energy. U is determined by the difference between the screened and bare second derivative of the energy with respect to on-site occupations λ I T = i λ I i (i is the spinorbital, and I the atomic site) [12]. While in the original derivation U was calculated from the GGA ground state, we argue here that U should be consistently obtained from the GGA+U ground state itself. This becomes especially relevant when GGA and GGA+U differ qualitatively (metal vs. insulator in the solid state, different symmetry in a molecule). To clarify our approach, we first identify in the GGA+U functional the electronic terms that have quadratic dependence on the occupations: