A tax incentive is an aspect of the tax code designed to incentivize, or encourage, a certain type of behavior. This may be accomplished through means including tax holidays, tax deductions, or tax abatements. Tax incentives are targeted at both individuals and corporations.

Individual tax incentives are most prominent in the federal income tax code in the United States, and include deductions, exemptions, and credits. Specific examples include the mortgage interest deduction, individual retirement account, and hybrid tax credit.

Corporate tax incentives more typically include federal, state, and local governments. The federal tax code provides a wide range of incentives for corporations, totaling $109 billion in 2011 according to a Tax Foundation Study.

The Tax Foundation categorizes federal tax incentives into four main categories, listed below:

Corporate tax incentives provided by state and local governments are also included in the tax code, but many times are directed at individual companies involved in a corporate site selection project. Site selection consultants negotiate these incentives, which are typically specific to the corporate project the state is recruiting, rather than applicable to a broader industry. Examples include:

Edward Henry Butler Vaizey (born 5 June 1968) is the Minister for Culture, Communications and Creative Industries in the UK, a Parliamentary Under-Secretary of State post with responsibilities in both the Department for Culture, Media and Sport (DCMS) and the Department for Business, Innovation and Skills (BIS).

He was elected Conservative Member of Parliament for the constituency of Wantage in the 2005 general election, and was re-elected in the 2010 general election.

He is a trained barrister, and regular columnist and commentator.

Vaizey is the son of the late Lord Vaizey, a life peer, and Marina Vaizey, a well-known art historian. As the son of a peer he has the title "The Honourable Edward Vaizey". Vaizey spent part of his childhood growing up in Berkshire. He was educated at St Paul's School and Merton College, Oxford, where he rose to the rank of Librarian (Vice President) of the Oxford Union and took a BA in History, achieving a 2.1. After leaving Oxford, Vaizey worked for the Conservative politicians Kenneth Clarke and Michael Howard as an adviser on employment and education issues. He trained and practised as a barrister for several years, specialising in family law and child care cases.