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investment tax credit

Cultural  
  1. An amount that businesses are allowed by law to deduct from their taxes, reflecting an amount they reinvest in themselves.


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Investment tax credits are structured to reward and encourage economic growth.

Example Sentences

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The 2022 Chips Act provided some $53 billion, plus a 25% investment tax credit, to subsidize U.S. chip-making.

From The Wall Street Journal ● Jun. 22, 2026

It also includes a 25% investment tax credit for building chip plants estimated to be worth $24 billion.

From Reuters ● Sep. 25, 2023

The proposals include a 30% investment tax credit for large-scale projects as well as coordinated agency reviews and early stakeholder engagement.

From Seattle Times ● Sep. 1, 2023

The law also offers an investment tax credit to companies that build factories that produce electric vehicles, wind turbines and solar panels.

From New York Times ● Jan. 11, 2023

The 1-year reduction for businesses would be in the form of a liberalized investment tax credit increasing the rate to 12 percent for all businesses.

From State of the Union Address by Gerald R. Ford

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