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

For instance, Democrats temporarily supercharged the child tax credit as part of the American Rescue Plan Act. —Zach Halaschak, The Washington Examiner, 18 Mar. 2026

California also now offers a tax credit for shooting on qualified soundstages within the state, and the idea is to support more long-term studio infrastructure and production capacity. —Brian Welk, IndieWire, 18 Mar. 2026

On the incentives side, Ireland’s Section 481 scheme offers a tax credit of up to 32 percent on eligible Irish expenditure. —Mathew Scott, HollywoodReporter, 17 Mar. 2026

By 2029, Hyundai Translead has committed to creating 2,500 full-time jobs between the two sites, according to an EDGE tax credit agreement with the state of Illinois. —Robert Channick, Chicago Tribune, 17 Mar. 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