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

So many of those are modeled in part after the federal child and dependent care tax credit . — Tax Notes Staff, Forbes.com, 23 June 2026

Pawlenty said his priorities included pushing for a permitting reform bill to pass Congress this year and for sustained tax credit support for solar panel manufacturing in the US. — Tim McDonnell, semafor.com, 23 June 2026

Tax incentives to reduce the cost of childcare Eligible workers may be able to offset their childcare expenses by claiming the child and dependent care tax credit, or CDCTC. — Lorie Konish, CNBC, 22 June 2026

LeVota’s tax troubles LeVota has said publicly that he was instructed by the Missouri State Tax Commission to carry out the tax credit and clawback plan. — Ilana Arougheti june 22, Kansas City Star, 22 June 2026

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