What is tax credit?

  • (noun): A direct reduction in tax liability (not dependent on the taxpayer's tax bracket).

Tax Credit

A tax credit is a sum deducted from the total amount a taxpayer owes to the state. A tax credit may be granted for various types of taxes, such as an income tax, property tax, or VAT. It may be granted in recognition of taxes already paid, as a subsidy, or to encourage investment or other behaviors. In some systems tax credits are 'refundable' to the extent they exceed the relevant tax. Tax systems may grant tax credits to businesses or individuals, and such grants vary by type of credit.

Read more about Tax Credit.

Some articles on tax credit:

Tax Credit - Credits For Alternative Tax Bases
... Several tax systems impose a regular income tax and, where higher, an alternative tax ... imposes an alternative minimum tax based on an alternative measure of taxable income ... Italy imposes an alternative tax based on assets ...
List Of Films Shot In Stamford, Connecticut
... as a filming location for motion pictures, especially since a 30 percent state tax credit for movie production took effect on July 1, 2006 ... The tax credit immediately started attracting filmmakers to Connecticut, creating a nascent industry connected to feature film production ... the more significant movies shot in Stamford before the tax credit were The Cardinal, directed by Otto Preminger and Boomerang, directed by Elia Kazan ...
List Of Legislation Sponsored By Ron Paul - Federal Power - Education
... Provides tax credits to families towards spending on any type of children's education–related expenses, public, private, or homeschool ... Education Improvement Tax Cut Act ... Applies a $5,000 tax credit per child for donations to any school in support of scholarships or academic or extracurricular programs ...
American Opportunity Tax Credit
... The American Opportunity Tax Credit is a partially refundable tax credit detailed in Section 1004 of the American Recovery and Reinvestment Act of 2009 ... The act specifies Provisions are specific to tax years 2009 and 2010 (since extended through 2017) for the first 4 years of post-secondary education ... Increases the Hope Scholarship Credit to 100 percent qualified tuition, fees and course materials paid by the taxpayer during the taxable year not to exceed $2,000, plus 25 percent of the next $2000 in qualified ...
List Of Legislation Sponsored By Ron Paul - Health - Tax Cuts
... Creates prescription drug tax credit and facilitates import and Internet sale of such drugs. 4799, 2000-06-29 (Family Health Tax Cut Act) ... Creates income tax credit for medical expenses for dependents ...

Famous quotes containing the words credit and/or tax:

    Taft, laughing, “What troubles [brother] Charles is, he is afraid Roosevelt will get the credit of making me President and not himself.” To Charles: “I will agree not to minimize the part you played in making me President if you will agree not to minimize the part Roosevelt played.”
    William Howard Taft (1857–1930)

    Rumble thy bellyful! Spit, fire! Spout, rain!
    Nor rain, wind, thunder, fire are my daughters.
    I tax you not, you elements, with unkindness;
    I never gave you kingdom, called you children.
    William Shakespeare (1564–1616)