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

California eventually adopted a very limited film tax credit plan in 2009, but even then production had already gone elsewhere. — Stacy Perman, Los Angeles Times, 20 Aug. 2026

Raman said the city has lost tens of thousands of film jobs under Bass and said Los Angeles needs a more aggressive film tax credit to compete with other states. — Barnini Chakraborty, The Washington Examiner, 20 Aug. 2026

In a common legislative maneuver, the authors expected to gut the existing language, amend it to reflect the deal to adjust the tax credit cap, then pass it out of the Assembly and send it back to the Senate for a concurrence. — Gene Maddaus, Variety, 20 Aug. 2026

California, for instance, more than doubled its annual tax credit program from $330 million to $750 million in 2025. — Erik Hayden, HollywoodReporter, 20 Aug. 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