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

Much of the focus has been boosting the state film tax credit, even uncapping it, as a way to compete with other states and countries. —Ted Johnson, Deadline, 2 June 2026

The Inflation Redaction Act put in a carrot, a tax credit that was available, and still is available, and will continue to be available for manufacturers in some cases. —Alan Ohnsman, Forbes.com, 1 June 2026

First, Congress should create a medical readiness partnership tax credit available to any employing organization that releases a physician for military service. —Robert Krasner, STAT, 1 June 2026

The federal tax credit scholarship program allows for a competitive school system, which benefits all students and ultimately our entire country. —Chicago Tribune, 29 May 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