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.
House Bill 136 creates a $250 tax credit for children younger than 6 and expands dependent care tax credits. — Christopher Harris, CBS News, 29 June 2026 Pawlenty said his priorities included pushing for a permitting reform bill to pass Congress this year and for sustained tax credit support for solar panel manufacturing in the US. — Tim McDonnell, semafor.com, 23 June 2026 States are increasingly using tax credits to help families manage the rising cost of raising children, particularly after the temporary federal child tax credit expansion showed how direct tax relief could affect household finances. — Kelly Phillips Erb, Forbes.com, 27 June 2026 Tax incentives to reduce the cost of childcare Eligible workers may be able to offset their childcare expenses by claiming the child and dependent care tax credit, or CDCTC. — Lorie Konish, CNBC, 22 June 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 9 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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