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Tax Holiday
(redirected from Tax incentive)

   Also found in: Dictionary/thesaurus, Wikipedia 0.01 sec.
Tax holiday
A reduced tax rate that a government provides as an inducement to foreign direct investment.

Tax Holiday
A temporary suspension of a tax, especially a sales tax. Jurisdictions declare tax holidays at certain times of the year on the theory that doing so will stimulate consumer spending and thereby induce economic growth. Some U.S. states routinely declare tax holidays before school begins each year, for example. Critics of tax holidays maintain that they deprive the jurisdictions of revenue and that their effect on growth is overstated.


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Byline: STEVE TERRELL ***** A Page A-8 story in Wednesday's edition incorrectly explained New Mexico's tax incentive program for film productions.
Not only does this keep waste out of landfills, he said, but also if it's done in accordance with the tax law, the government will provide a significant tax incentive, about 20 percent of the material and labor costs.
The IRS said in a coordinated issue paper that a location tax incentive paid or credited to a business by a unit of state or local government is not included in the business's gross income but rather reduces its tax expense.
 
 
 
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