subsidy

subsidy definition - business

subsidy

A government payment or other benefit to a producer (consumer) to encourage the production (consumption) of particular products or services. For example, the state of Wisconsin provides an interest-rate subsidy to municipalities that borrower money to finance wastewater treatment plants.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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