A tax holiday is a temporary period during which a new or expanding business pays no property taxes or significantly reduced taxes, typically offered as an economic development incentive. Tax holidays might last 3-10 years, sometimes with graduated return to full taxation. Municipalities use tax holidays to attract investment, create jobs, and stimulate development. Arguments for tax holidays include job creation, eventual tax base growth, and competitive necessity. Arguments against include foregone revenue, unfairness to existing businesses paying full taxes, and questions about whether incentives actually influence location decisions. Provincial legislation authorizes and may limit tax holiday programs. Successful tax holidays theoretically generate enough future tax revenue and economic benefit to justify temporary revenue loss.