Tax Credits
/ˈtæks ˌkrɛdɪts/
Definitions
- (n.) Amounts that taxpayers can subtract directly from taxes owed, reducing tax liability dollar for dollar.
The government offers tax credits to encourage renewable energy investments.
Forms
- tax credit
Related terms
See also
Commentary
Tax credits differ from tax deductions as they directly reduce tax owed, not just taxable income.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.