tax-credit

Vocabulary Word

Definition

'Tax-credit' is a benefit given by the government to reduce your tax bill. It's like having a special discount coupon that directly reduces the amount you owe.

Examples in Different Contexts

In business finance, companies can benefit from a 'tax-credit' to offset costs of certain investments, like R&D. A CFO might say, 'Utilizing the R&D tax-credit effectively lowers our overall tax liability for the year.'

Practice Scenarios

Tech

Scenario:

Investing in environmentally friendly technology can open up opportunities for significant taxation benefits.

Response:

Indeed, our green-energy innovations should qualify us for those tax-credits.

Public-Policy

Scenario:

The government's new policy initiative favours low-income families with tax breaks for certain expenses.

Response:

I believe the housing tax-credit will indeed boost affordable housing investments.