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

It was last renovated with low-income housing tax credit equity in 2006. — Chris Higgins, Kansas City Star, 28 Sep. 2026

The Senate and House of Representatives have jointly introduced legislation calling for the creation of a national film tax credit. — Savannah Sicurella, AJC.com, 25 Sep. 2026

Youngkin’s Empowering American’s Parents education policy outfit is also spending in battleground states to encourage governors to opt in to the Education Freedom Tax Credit, a tax credit for people who donate to Scholarship Granting Organizations. — Burgess Everett, semafor.com, 25 Sep. 2026

On Thursday, a bipartisan group of congressional leaders introduced a bill to create a federal film and television tax credit, the Motion Picture, Television and Entertainment Revitalization Act. — Cerys Davies, Los Angeles Times, 25 Sep. 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