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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Administered by Proimágenes Colombia, Colombia’s CINA incentive (Audiovisual Investment Certificate) grants a transferable tax credit equal to 35% of eligible spending on audiovisual services in Colombia. — Anna Marie De La Fuente, Variety, 10 July 2026 The tax credit does not only benefit big Hollywood film studios like Disney. — Evelyn Ronan, Sacbee.com, 8 July 2026 Animated productions are emerging as a force in California’s film and TV tax credit program. — Winston Cho, HollywoodReporter, 7 July 2026 As Jackson County legislators consider whether to implement a tax credit program to homeowners who paid inflated property tax bills in 2023, county homeowners and organizations are split on who should bear the cost. — Ilana Arougheti, Kansas City Star, 1 July 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 14 Jul. 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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