tax subsidynoun [ C or U ]
ukusTAX, GOVERNMENT, ECONOMICSa reduction in tax in order to reduce the cost of producing food, a product, etc. and to help to keep its price low:
tax subsidies to sb/sth Environmentalists have lobbied to end all tax subsidies to big oil companies.
a tax subsidy for sth They approved a $10 million tax subsidy for beef producers to offset the higher feed costs.
They oppose the whole idea of tax subsidy.