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

Word about leases and price of a Rivian Rivian does leases in some states and includes the $7,500 federal tax credit over the term of the lease. —Brooke Crothers, Forbes.com, 27 Apr. 2025

Typically such incentives are paid either through a tax credit or a government check, similar to the stimulus checks that were given to millions of households during the pandemic. —Anne Marie D. Lee, CBS News, 25 Apr. 2025

The truck will start around $27,000, or $20,000 after the federal tax credit (if the Trump administration doesn't kill it), and be available in 2026, TechCrunch reports. —Emily Forlini, PC Magazine, 25 Apr. 2025

Plus, the $7,500 federal tax credit drops the starting price to under $20,000, according to Chris Barman, Slate's CEO. —Morgan Korn, ABC News, 25 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