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A tax credit, also known as a fiscal credit, is a term that is commonly used in some countries to refer to a type of tax reduction. It is a tool used by governments to incentivize certain behaviors or actions, such as investing in specific industries or promoting energy efficiency. Essentially, a tax credit allows taxpayers to reduce their overall tax liability by a certain amount, resulting in potential savings. This financial concept is crucial in understanding the complex world of finance and taxation.
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