What Is a Tax Abatement?
A tax abatement is an agreement where a local government (like a county) temporarily reduces or waives some portion of property taxes on a new project to encourage development. Think of it like this: the county is offering a discount on taxes in exchange for promises the company makes (investment, jobs, infrastructure, community benefits, etc.). What a tax abatement is (simple definition) A tax abatement typically reduces the taxable value of certain improvements (often new construction and equipment) for a set period of time. ...