A tax credit is money that the government refunds you when you pay your taxes. Recent tax credits were enacted by the Obama administration in 2009 as an incentive for people to buy homes. Some tax credits come and go. You usually shouldn’t plan on a large investment solely due to an incentive given by the government. The incentive or tax credit might help, but you should still make sure that all of the other elements of your investment strategy work and are right for your long term planning.