tax credit


tax credit
tax credit n: 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

Merriam-Webster’s Dictionary of Law. . 1996.

tax credit
n.
An amount subtracted from a taxpayer’s tax liability.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


tax credit
An incentive that lets taxpayers reduce the overall amount of taxes they owe by meeting certain qualifications. Examples of tax credits offered by the IRS include the Child Tax Credit and tax credits for first-time home buyers.
Category: Personal Finance & Retirement → Taxes

Nolo’s Plain-English Law Dictionary. . 2009.

tax credit
A credit for tax paid (foreign or domestic), for example, dividends paid by a UK resident company carry a tax credit, which "franks" (either partially or wholly) the shareholder's tax liability on the dividend.
Related links
dividends

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.


tax credit
n. An amount counted directly dollar-for-dollar to reduce one's tax liability, rather than a reduction in gross income.
See also tax deduction.
@ investment tax credit
A credit allowed for investments in personal property that is exclusively used for business or is income-producing (applicable through tax years before 1986).
+investment tax credit
n. A provision of law, now largely repealed, that permitted a portion of the purchase price of capital goods to be utilized as a credit against income taxes.
@

Webster's New World Law Dictionary. . 2000.