Explore commonly used personal finance terms.
Abatement refers to a reduction or exemption of taxes, fines, or fees granted by government authorities. Tax abatement programs are often used to encourage economic development by reducing property taxes for certain businesses or individuals, usually for a set period. An abatement can apply to various tax types, such as property, income, or environmental fees, benefiting those who qualify by lowering costs. For example, municipalities may offer property tax abatements to attract new businesses or support residential developments.
