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

Uncertain future Coleman, who successfully added an amendment to the bill that expanded the disaster damage tax credit, voted against the legislation along with Senate Minority Leader Doug Beck, an Affton Democrat, and Sen. Steve Roberts, a St. Louis Democrat. —Kacen Bayless, Kansas City Star, 3 June 2025

Consumer tax credits would phase out soon Under the bill passed by the House, the consumer tax credit for new electric vehicles (worth up to $7,500) would phase out after 2026. —Camila Domonoske, NPR, 3 June 2025

The House measure would also make the highest child tax credit $2,500 from 2025 through 2028. —Kate Dore, Cfp®, Ea, CNBC, 1 June 2025

Newsom has pushed hard for the tax credit expansion to help the ailing Los Angeles industry and keep production in state, and he’s included the money in his budget proposals which lawmakers will debate separately. —Calmatters, Mercury News, 27 May 2025

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