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 harder question is whether a tax credit can quietly do what a grant program did, and keep doing it after the grant money is gone. — Alison Griffin, Forbes.com, 17 July 2026

Unlike a tax credit, which reduces your tax bill dollar for dollar, the medical expense deduction lowers your taxable income. — Rebecca Safier, USA Today, 15 July 2026

Also cited was Meledandri’s support for the inauguration of France‘s international tax credit in 2009. — Tom Tapp, Deadline, 15 July 2026

Assemblymember Rick Chavez Zbur (D-Hollywood), who co-wrote the legislation that expanded the film and television tax credit, says that the cap appears to have been an oversight, and that members believed the film program was exempt. — Gio Insignares, CBS News, 14 July 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