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.

Example Sentences

Recent Examples on the Web

Importantly, this means the GV70 Electrified is eligible for the full $7,500 IRS clean vehicle tax credit, at least until the implementation of the domestic battery content requirements. —Alex Kalogiannis, Ars Technica, 21 Mar. 2023

Both automakers manufacture their vehicles exclusively abroad, automatically disqualifying them for the federal tax credit. —Emily Dreibelbis, PCMAG, 20 Mar. 2023

No matter what happens with the state rebates, Oregon drivers still qualify for a federal tax credit of up to $7,500 for new EVs under the Inflation Reduction Act. —Gwozniac, oregonlive, 15 Mar. 2023

The Coronavirus Aid, Relief, and Economic Security Act, enacted on March 27, 2020, provided for an employee retention tax credit to encourage eligible employers to keep people on their payroll despite the difficult economic conditions. —Susan Tompor, Detroit Free Press, 11 Mar. 2023

Nissan Leaf models purchased before March should qualify for the $7,500 federal tax credit. —CBS News, 1 Mar. 2023

The legislation stipulates that for U.S. consumers to be eligible for a tax credit of up to $7,500 on their EV purchase, the EV’s battery must largely contain minerals from the U.S. or a country with which the U.S. has a free-trade agreement. —Aamer Madhani, Fortune, 10 Mar. 2023

In theory, purchasing one of the vehicles eligible for a tax credit would be more affordable for many consumers. —Doug Johnson, Ars Technica, 9 Mar. 2023

Electric vehicles bought between 2010 and 2022 may be eligible for a tax credit of up to $7,500. —Clare Mulroy, USA TODAY, 8 Mar. 2023

See More

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