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

Later, Cheeks specified that California covering above-the-line costs with its tax credit — like competitor states New York, Georgia and New Mexico do — would help make the Golden State more attractive to the studio. —Katie Kilkenny, HollywoodReporter, 15 Apr. 2026

The tax credit provides a refundable, per-child credit to families with children under age 17, with benefits that vary by child age and phase out gradually as income rises. —Delilah Lopez, Denver Post, 14 Apr. 2026

That is part of an $803 million federal tax credit granted to Constellation under the Inflation Reduction Act, signed by former President Joe Biden in 2022. —Maggie Dougherty, CBS News, 14 Apr. 2026

Commercial Banking saw revenue advance 7%, attributable to higher tax credit and equity investments. —Zev Fima, CNBC, 14 Apr. 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