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

At the beginning of the year, a report from the state’s development office indicated that applications to its state tax credit were down 53% compared to five years ago – even after the state doubled its annual cap in 2023 from $420 million to $700 million. —Diana Lodderhose, Deadline, 25 Sep. 2025

The federal tax credit offers 30% off total installation costs. —Francesca Pica, jsonline.com, 24 Sep. 2025

In 2019, when a previous version of the EV tax credit was phased out for Tesla and General Motors because both hit a prescribed sales target, those two automakers responded by cutting prices. —Chris Isidore, CNN Money, 23 Sep. 2025

The union was also heavily involved in the lobbying effort this year to expand the California tax credit and include a broader range of productions. —Gene Maddaus, Variety, 21 Sep. 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