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

Democrats have been frustrated in recent years by the failure to create a new, standalone, refundable child tax credit. —Christopher Keating, Hartford Courant, 28 Apr. 2026

While the tax credit reduction represents a rare area of agreement on the issue of taxation, Mamdani and Menin weren’t totally aligned. —Josephine Stratman, New York Daily News, 28 Apr. 2026

But with the recent tax credit allocation, DreamWorks will hire about 100 people in California for its upcoming untitled film. —Samantha Masunaga, Los Angeles Times, 28 Apr. 2026

Speakers highlighted Portugal’s mix of national funds and rebates, Spain’s support across every stage of filmmaking – with a focus on emerging female directors—and Mexico’s new incentives program, offering up to a 30% tax credit to boost local production and attract global investment. —Anna Marie De La Fuente, Variety, 26 Apr. 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