Tax Credit

A Tax Credit is an amount of money that a taxpayer is allowed to subtract from the taxes owed.

References

(Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/Tax_exemption
- A tax credit is a tax incentive which allows certain taxpayers to subtract the amount of the credit from the total they owe the state.^[1] It may also be a credit granted in recognition of taxes already paid or, as in the United Kingdom, a form of state support for low earners.
  Incentive tax credits may be used to encourage behaviors like investment or parenting. A credit directly reduces tax bills, unlike tax deductions and tax exemptions, which indirectly reduce tax bills by reducing the size of the base (for example, a taxpayer's income or property value) from which the tax bill is calculated.
  Most tax credits are nonrefundable tax credits and so do not apply if no taxes are owed. However, some tax credits are refundable tax credits^[2] so if the credit exceeds the amount of taxes owed, the excess is returned to the taxpayer.

(Investopedia, 2016) ⇒ http://www.investopedia.com/terms/t/taxcredit.asp
- A tax credit is an amount of money a taxpayer is able to subtract from taxes owed to the government. The value of a tax credit depends on the nature of the credit, and certain types of tax credits are granted to individuals or businesses in specific locations, classifications or industries. Unlike deductions and exemptions, which reduce the amount of taxable income, tax credits reduce the actual amount of tax owed.

↑ Piper, Mike (Sep 12, 2014). Taxes Made Simple: Income Taxes Explained in 100 Pages or Less. Simple Subjects, LLC. ISBN 978-0-9814542-1-4.
↑ The OECD uses the term "wastable" to mean refundable in some analyses, though this term is not used by English language tax systems.