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

New federal tax credits that parents can use for private school tuition complement Colorado’s existing Child Care Contribution Tax Credit, which provides a state tax credit for qualifying donations supporting child care, including preschool. — Jared Polis, Denver Post, 30 July 2026

As of July 2026, there is no new federal energy efficiency tax credit. — Alora Bopray, USA Today, 30 July 2026

Following the pandemic, New York provided a tax credit for qualifying costs up to 25% of a show’s budget, but that fund has already run out of money. — Katie North, Forbes.com, 29 July 2026

Third-party funding doesn’t only incorporate co-productions but includes the lucrative UK high-end TV tax credit and distributor advances. — Max Goldbart, Deadline, 28 July 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