Which of the following activities does not result in a "tax credit" for income tax purposes?

A) the use of certain fuels
B) foreign taxes paid
C) hiring certain employees
D) investing in certain municipal bonds

Tax Credit

An amount that taxpayers can subtract directly from taxes owed to the government.

Municipal Bonds

Bonds issued by local governments or their agencies, which are often used to fund public projects like schools, highways, and water systems, and may offer tax-exempt interest to investors.

Foreign Taxes Paid

This represents taxes paid to foreign governments on income earned outside of the taxpayer’s country of residence, often creditable against domestic taxes in the taxpayer’s home country to avoid double taxation.