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
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

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n. A provision of law, now largely repealed, that permitted a portion of the purchase price of capital goods to be utilized as a credit against income taxes.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.

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  • Tax-Credit —   [tæks kredɪt, englisch], ein Abzug von der Steuerschuld, durch den entweder individuellen Verhältnissen Rechnung getragen beziehungsweise spezielle Steuervergünstigungen gewährt werden sollen oder andere Steuern zur Vermeidung einer… …   Universal-Lexikon

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  • tax credit — A direct dollar for dollar reduction in tax allowed for expenses such as child care and R&D for building low income housing. Compare tax deduction. Bloomberg Financial Dictionary Additional amount on dividends paid by a company resident in France …   Financial and business terms

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  • tax credit — 1) The tax allowance associated with the dividend paid by a company. The shareholder is given allowance for the tax paid at source by the tax credit, at the same rate, 10 90; i. e. a dividend of £90 received by the shareholder has an associated… …   Big dictionary of business and management

  • tax credit — An amount subtracted from an individual s or entity s tax liability to arrive at the total tax liability. A tax credit reduces the taxpayer s liability dollar for dollar, compared to a deduction which reduces taxable income upon which the tax… …   Black's law dictionary

  • Tax Credit — An amount of money that a taxpayer is able to subtract from the amount of tax that they owe to the government. The value of a tax credit depends on what the credit is being provided for, and certain types of tax credits are granted to individuals …   Investment dictionary

  • tax credit bond — USA A bond whose holders receive, instead of periodic interest and principal payments, US federal income tax credits of up to 100% of the interest amount they would have otherwise received, which they can use to offset their US federal income tax …   Law dictionary

  • tax credit — /ˈtæks krɛdət/ (say taks kreduht) noun a credit received by a taxpayer in relation to certain items of expenditure or income, and deducted directly from income tax otherwise payable …  

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