tax credit

tax credit definition - legal

n

An amount counted directly dollar-for-dollar to reduce oneÂ’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).

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.

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