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

The expansion to the tax credit program was mostly targeted at the format, long an anchor of production in the state that provides recurring jobs season after season. —Winston Cho, HollywoodReporter, 23 Oct. 2025

This was due primarily to a ‘push-forward effect’ from consumers who rushed to purchase or lease EVs ahead of the $7,500 EV tax credit, which expired on 9/30. —Lisa Kailai Han, CNBC, 22 Oct. 2025

Drop in key source of profits But the removal of the EV tax credit is only part of Tesla’s problem. —Chris Isidore, CNN Money, 22 Oct. 2025

The state’s return is an average of 17 cents in tax revenue for every state dollar spent, according to Carlianne Patrick, an associate professor at Georgia State University who conducts audits of the state’s tax credit programs. —Jason Ma, Fortune, 19 Oct. 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