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

When asking the state for budget help, the Mamdani administration suggested that the NYC Passthrough Entity tax credit should be cut from 100 percent to 75 percent, with the city keeping the other 25 percent. —Amethyst Martinez, USA Today, 11 May 2026

The drive to pass a post-production tax credit bill in the California legislature received a boost Friday night when the California Post Alliance announced that the Television Academy has joined the fight. —Jon Burlingame, Variety, 9 May 2026

Schmidt amended the bill to expand eligibility for a child tax credit to include expecting parents. —Matthew Kelly may 8, Kansas City Star, 8 May 2026

The program would provide a dollar-for-dollar federal tax credit of up to $1,700 for donors to nonprofits that grant scholarships. —Cayla Bamberger, New York Daily News, 8 May 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