tax abatement

A temporary suspension of property taxation, generally for a spe-cific period of time. Governments use abatements as an economic development tool. For example, a tax abatement may be given to a developer or building owner who builds or makes improvements to buildings in certain areas. Abatements also may be used to encourage companies to locate in a specific area, or offered as an incentive to stop businesses from moving out of a specific area. Abatements up to 100 percent are offered by governments to certain companies for a limited time.