tax credit

tax credit (plural tax credits)

1. A tax incentive which allows certain taxpayers to subtract the amount of the credit they have accrued from the total they owe.

   Coordinate term: deduction (whose subtraction is usually from the taxable amount, not from the tax owed)

   • 2022 December 22, Annie Lowrey, quoting Pamela Herd, “The Child Tax Credit Was a Little Too Subtle”, in The Atlantic‎^[1], archived from the original on 22 December 2022:

     A tax credit—it just doesn’t feel like a benefit in the same way that getting your Social Security check does. It doesn’t register with people in the same way, and that has a real impact on support for the program.

   • 2025 June 3, David Smith, “Elon Musk calls Trump’s ‘big, beautiful’ tax bill a ‘disgusting abomination’”, in The Guardian‎^[2], →ISSN, archived from the original on 3 June 2025:

     The bill extends Trump’s 2017 tax cuts and includes new spending for border security and the military. Republicans aimed to offset these costs with cuts to programmmes^[sic] such as Medicaid, food stamps and green-energy tax credits.

• tax credit on Wikipedia.Wikipedia