tax credit

noun

: an amount of money that is subtracted from taxes owed

Families with children in college will receive a tax credit this year.

Examples of tax credit in a Sentence

Recent Examples on the Web

As part of the 2021 stimulus bill, Bennet won inclusion of a massive expansion of the federal child tax credit, in the form of $300 monthly checks to parents. —Nick Coltrain, Denver Post, 11 Apr. 2025

Pol proposed an amendment to increase the aggregate amount of state tax credits awarded under the affordable and workforce housing tax credit from $30 million to $60 million. —Alexandra Kukulka, Chicago Tribune, 10 Apr. 2025

In a significant development for the tax credit and incentives (C&I) technology sector, Incentify has announced the successful closure of a $9.5 million Series A funding round. —Josipa Majic Predin, Forbes.com, 3 Apr. 2025

Nest has been championing an unscripted UK tax credit of late, as costs soar and the middle falls out the market. —Max Goldbart, Deadline, 1 Apr. 2025

Rhymes for tax credit

• accredit
• discredit
• noncredit
• dedit
• edit
• microcredit

Legal Definition

tax credit

noun

: an amount that may be subtracted from the sum of tax otherwise due and that is distinguished from a deduction applied to gross income in the calculation of taxable income compare exemption