Abatement is a measure that alleviates or reduces a burden. It is a procedure that decreases the amount owed or imposed on a certain transaction.
The term abatement refers to a situation where an economic burden is reduced. This burden might take the form of debt, an import tariff, a tax, a fine, a penalty or a reduction of the percentage being charged, like an interest rate or a tax bracket reduction. Tax abatements are the most frequent scenarios where the term is employed and they are a reduction or exemption granted to an individual or a corporation by the government to encourage the expansion of certain activities or projects.
On the other hand, natural disasters and town-building are also activities that can create the necessity for a tax abatement to be issued. They normally have a predefined life span where they can be utilized and then the situation steps back to the regular taxing rules. Finally, debts can also be abated. This is a case that might take place in government-issued debt like student loans or industry-shaping loans, which are tools employed to promote activities within certain business fields like agriculture or farming. By granting abatements, the remaining debt balance can be partially or totally offset.