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

The total tax credit could rise to 50% or more when combined with state incentives in places like California and New York — easily surpassing the incentives offered by other countries. — Gene Maddaus, Variety, 6 Oct. 2026

Under Governor Hochul’s leadership, New York has built an unmatched home for film and television — world-class talent, iconic locations and a film tax credit program that delivers real jobs and investment for New Yorkers. — James Hibberd, HollywoodReporter, 5 Oct. 2026

The drop in sales was widely expected thanks to the expiration of the $7,500 federal tax credit for electric vehicles on September 30, 2025. — Andrew J. Hawkins, The Verge, 2 Oct. 2026

Taxpayers who donate to an organization passing out the scholarships will receive a federal tax credit, a perk expected to further fuel the conservative school choice movement. — Bianca Vázquez Toness, Los Angeles Times, 1 Oct. 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