Definition
A reduction or elimination of property taxes for a specified period, typically offered as an incentive for development or renovation in targeted areas. It's the government's way of bribing you to improve neighborhoods they've neglected.
Example Usage
The 10-year tax abatement made the historic renovation financially viable, saving the developer $200,000 annually.
Origin
Municipal policy tool developed in urban renewal efforts
Fun Fact
New York City's 421-a tax abatement program became so controversial and costly that it expired in 2022, eliminating a major development incentive.
Source: Tax policy and economic development terminology
Related Terms
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See “tax abatement” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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