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

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How the tax credit will work Beginning in January, qualifying taxpayers will be able to donate up to $1,700 to a scholarship-granting organization, or SGO. — Cory Turner, NPR, 20 Oct. 2026 Supporters wanted to some version of their ideas into the tax credit bill that was introduced to much fanfare in September. — Gene Maddaus, Variety, 19 Oct. 2026 So, when Congress created a new federal tax credit for contributions to scholarship granting organizations (SGOs), my first instinct was skepticism. — Raymond C. Pierce, Sun Sentinel, 18 Oct. 2026 Some public school advocates have called the tax credit as a wolf in sheep’s clothing aimed at further privatizing public education. — Austin Horn, Miami Herald, 16 Oct. 2026 See All Example Sentences for tax credit

Rhymes for tax credit

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Taxco
tax credit
tax-deductible
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“Tax credit.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax%20credit. Accessed 21 Oct. 2026.

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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
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