Incentives and tax credits

Incentives and tax credits are tools used by governments to encourage certain behaviors or investments. Incentives often come as rewards like grants or subsidies to motivate activities such as renewable energy adoption. Tax credits directly reduce the amount of tax you owe; for example, a tax credit for installing solar panels lowers your tax bill dollar-for-dollar. Both aim to make specific actions more financially attractive, guiding individuals and businesses toward choices that benefit the broader economy or environment without forcing compliance.