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 creating jobs in certain areas. Individuals can also benefit from tax incentives, such as credits for education expenses or deductions for mortgage interest. By offering these incentives, the government aims to stimulate economic growth, promote social goals, and support industries that align with public interests, like renewable energy or education.