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

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

Currently, there’s a tax credit that offers 40% for foreign productions, which is what Netflix, Amazon, Sony and Disney use, for example. —Carlos Aguilar, Los Angeles Times, 29 Mar. 2025

Trillions of dollars in tax breaks enacted via TCJA are scheduled to expire after 2025, including lower tax brackets, a bigger child tax credit and a 20% deduction for pass-through businesses, among others. —Kate Dore, Cfp®, Ea, CNBC, 12 Mar. 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