Abatement

Abatement refers to a reduction or elimination of a tax liability or penalty.

In taxation, it often involves a decrease in the amount owed, which can occur due to various reasons such as tax credits, deductions, or specific governmental programs designed to relieve taxpayers from financial burdens. For example, a property tax abatement may be offered to encourage development or investment in a particular area, resulting in a temporary reduction of property taxes for a defined period.