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 new rules would not restrict banks' ability to count housing tax credit investments toward their Community Reinvestment Act obligations, an administration official said. — Arkansas Online, 13 Oct. 2026

Greg Dolezal noted Josh McLaurin voted to keep the tax credit in 2022 and 2024. — AJC.com, 12 Oct. 2026

Electric vehicles accounted for just under 10% of US new car sales last year, and sales have faced difficulty following the expiration of a federal tax credit for EV buyers. — Jordan Valinsky, CNN Money, 10 Oct. 2026

The legislation would strengthen the low-income housing tax credit, provide more tax help for first-time buyers and has provisions to encourage conversion of vacant offices and commercial buildings into housing. — Mathew Miranda, Sacbee.com, 8 Oct. 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