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

Since the $750 million tax credit was signed into law last year, Los Angeles hasn’t yet experienced a significant recovery in production levels. — Katie Kilkenny, HollywoodReporter, 14 Aug. 2026

Banks are the main investors in the federal low-income housing tax credit, the largest subsidy for building affordable apartments. — Solomon Greene, The Conversation, 14 Aug. 2026

The post-production bill, AB 2319, would create a new 35%-50% refundable tax credit for film and TV editing and VFX work. — Gene Maddaus, Variety, 14 Aug. 2026

As has been case with the mothership series starring Manuel Garcia Rulfo, the idea is to film in Los Angeles if the spinoff qualifies for a California tax credit. — Nellie Andreeva, Deadline, 12 Aug. 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