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investment tax credit

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

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Note

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

The New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.