A more thorough explanation:

Definition: A tax incentive is a benefit offered by the government to encourage individuals or businesses to engage in a particular activity. This benefit comes in the form of a tax break or reduction in taxes owed.

For example, if you donate money or property to a qualified charity, you may be eligible for a tax deduction. This means that the amount you donated can be subtracted from your taxable income, reducing the amount of taxes you owe.

Another example of a tax incentive is the tax credit offered to individuals who purchase an electric vehicle. This credit can be applied to your tax bill, reducing the amount of taxes you owe.

These examples illustrate how tax incentives can be used to encourage certain behaviors or actions that are deemed beneficial to society. By offering tax breaks or credits, the government can incentivize individuals and businesses to engage in activities that promote social welfare, such as charitable giving or the use of environmentally-friendly vehicles.