Tax abatement is a reduction or elimination of property taxes for a period of time, typically used to encourage business investment, development, or property improvements. Municipalities offer abatements to attract new businesses, encourage expansion, or stimulate development in targeted areas. Abatements may phase out gradually—for example, 100% reduction the first year declining to regular taxation over five years. Critics argue abatements shift tax burden to other properties, create competitive 'races to the bottom' between municipalities, and may subsidize development that would occur anyway. Supporters contend abatements generate jobs and development that eventually increase the tax base. Provincial legislation authorizes and may limit municipal tax abatement programs.