Tax breaks are reductions in the amount of tax that individuals or businesses owe to the government. They can come in various forms, such as deductions, credits, or exemptions, which lower taxable income or the overall tax bill. Tax breaks are often designed to encourage certain behaviors, like investing in renewable energy or supporting education. Governments use tax breaks to stimulate economic growth and support specific sectors. For example, a home mortgage interest deduction allows homeowners to deduct interest payments from their taxable income, making homeownership more affordable. Similarly, business tax credits can incentivize companies to hire more employees or invest in new technologies.