What is tax credit?
A dollar-for-dollar reduction of tax liability, which makes it more valuable than a deduction (which only reduces taxable income). Programs like LIHTC and HTC convert tax credits into upfront project equity.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.