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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Eliminating the tax credit didn’t kill the EV market entirely, however, and EV sales in the US actually rose 15% from the first quarter to the second quarter of this year. — Michael Ballaban, CNN Money, 7 Aug. 2026 The tax credit program was also proposed as a method of settling a class-action lawsuit against the county, filed earlier this year. — Ilana Arougheti, Kansas City Star, 7 Aug. 2026 Both want to expand the child tax credit and give first time homebuyers a tax reduction. — Rachel Royster, Fort Worth Star-Telegram, 7 Aug. 2026 Time’s explainer notes that current law confines claims to importers of record and customs brokers, and that any broad household compensation would likely have to come through a tax credit or dedicated rebate program enacted by Congress. — Business Columnist, Los Angeles Times, 6 Aug. 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 13 Aug. 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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