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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
In June, lawmakers approved a major expansion of the funding allocated each year to the state’s film and television tax credit program, moving to raise that cap to $750 million from $330 million. — Suhauna Hussain, Los Angeles Times, 29 Aug. 2026 Governor Kathy Hochul surprised many in May by announcing her intention to sign New York State up for the One Big Beautiful Bill’s tax credit for Scholarship Granting Organizations (SGOs). — Ray Domanico, Washington Post, 26 Aug. 2026 France subsequently introduced its first dedicated tax credit for international productions, initially covering 20% of eligible spending in the country. — Elsa Keslassy, Variety, 25 Aug. 2026 Raman said the city has lost tens of thousands of film jobs under Bass and said Los Angeles needs a more aggressive film tax credit to compete with other states. — Barnini Chakraborty, The Washington Examiner, 20 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 1 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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