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

This summer, Newsom increased the total film and TV tax credit to $750 million in California, nearly doubling the previous cap, in a bid to encourage more productions to film in Los Angeles. —Ritika Gupta, CNBC, 20 Oct. 2025

The American Federation of State, County and Municipal Employees (AFSCME), a union representing thousands of state workers, joined other Nevada organizations this week in sending a letter to the governor urging him to not include the film tax credit proposal in the upcoming special session. —Jason Ma, Fortune, 19 Oct. 2025

The end of the tax credit remains a big challenge for many automakers. —Susan Tompor, USA Today, 19 Oct. 2025

Mercy Housing is expected to apply for a state low-income housing tax credit by mid-2026, which would require groundbreaking within six months. —Ryan MacAsero, Mercury News, 18 Oct. 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