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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Approximately 80 countries around the world currently offer a national tax credit. — Sam Roseme, HollywoodReporter, 5 Sep. 2026 Without the tax credit program, the district would have about 26% of its total budget available in liquid assets at the end of the year, which Hertzog said would have been considered stable. — Ilana Arougheti, Kansas City Star, 4 Sep. 2026 While exact provisions are still being negotiated, the expectation is that the credit will be stackable with states’ incentives — similar to how Canada’s tax credit works. — Samantha Masunaga, Los Angeles Times, 3 Sep. 2026 The tax credit, which helped fuel Georgia’s film industry over the past 18 years, has no cap, so films and TV shows don’t have to worry about the credits disappearing. — Rodney Ho, AJC.com, 3 Sep. 2026 See All Example Sentences for tax credit

Rhymes for tax credit

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Browse Nearby Words

Taxco
tax credit
tax-deductible
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Cite this Entry

“Tax credit.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax%20credit. Accessed 6 Sep. 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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