Tax incentives are financial benefits provided by the government to encourage specific behaviors or activities. These can include deductions, credits, or exemptions that reduce the amount of tax owed. For example, businesses may receive tax incentives for investing in renewable energy or for creating jobs in certain areas. These incentives aim to stimulate economic growth, promote investment, and support social goals. By lowering the tax burden, the government hopes to motivate individuals and companies to engage in activities that can lead to broader benefits for society, such as increased employment or environmental sustainability.