Definition, Meaning & Synonyms

tax-incentive

noun

/tæks ɪnˈsɛntɪv/

Definition

A tax incentive is a financial advantage provided by the government to encourage specific behaviors or activities.

Examples

Many companies benefit from tax incentives for investing in renewable energy.
The government provides tax incentives to promote research and development in technology.
Homeowners can take advantage of tax incentives for energy-efficient upgrades.

Meaning

Tax incentives aim to motivate individuals or businesses to engage in certain actions, such as investment or philanthropic giving, by reducing their tax obligations.