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 child tax credit will rise by $100 to a maximum of $2,300 per child, and the refundable portion will rise by $100 to $1,800. — Ken Sweet, Chicago Tribune, 10 Nov. 2026

Most states have a tax credit program to incentive productions to film there, including Texas, which passed a huge bill last year. — Brayden Garcia, Fort Worth Star-Telegram, 7 Nov. 2026

The film was made possible by a grant from EFICINE in Mexico and the Jalisco State tax credit and tourism board. — Anthony D'alessandro, Deadline, 6 Nov. 2026

The tax credit was approved by the legislature as part of the two-year state budget in a huge document known as Senate Bill 1. — Christopher Keating, Hartford Courant, 5 Nov. 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