English Reference

Word

incentive

Phoneticsin·cen·tive, stress on the second syllable

US/ˌɪnˈsɛnɪv/

UK/ɪnsˈɛntɪv/

Definitions

01motivation or reward

B2 · Upper Intermediate Countable noun General-service

n. something that makes you want to do something, like a reward for working hard.

n. a thing that motivates or encourages someone to do something; often a formal reward offered by an organisation.

“The company offered a cash bonus as an incentive for finishing the project early.”

“The government is providing tax incentives to encourage small businesses to invest in renewable energy technology.”

Usage

Commonly used with the preposition 'to' followed by an infinitive, or 'for' followed by a noun.

Antonyms

deterrentdiscouragement

02encouraging action

C1 · Advanced Formal · Academic

adj. describing something that is designed to encourage you to act.

adj. serving to incite or rouse to action; typically used in technical or formal contexts regarding motivation.

“The manager used incentive words to get the team excited about the new goal.”

“The report highlighted the incentive effect of the new commission structure on the sales department's overall performance.”

Usage

Usually placed before the noun it modifies.

Collocations

Common phrases and expressions where native English speakers use the word “incentive” in context.

Verb

01. have incentive

“Farmers have little incentive to increase production if prices remain low.”

verb + noun

Adjective

02. economic incentive

“The government is offering an economic incentive to companies that invest in green energy.”

adj + noun

Real-World Examples

“It was also a story about millions of businesses acquiring the ability - and the incentive - to accept digital payments.”
BBC News 16 Aug 2026
“Cities often offer developers incentives to install them.”
Phys.org 14 Aug 2026
“Often cities offer developers incentives to install them.”
The Conversation 12 Aug 2026

Etymology

From Medieval Latin incentīvus (“that strikes up or sets the tune”), from incinō (“to strike up”), from in- (“in, on”) + canō (“to sing”). The formation appears to have been influenced by incendō (“to set on fire”).

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

Domain

Finance

This entry

Exam level
CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.B2 FirstIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.5.5–6.5TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 4.0–4.572–94TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.785–944
Frequency
Frequent
Level
B2 · Upper IntermediateOxford
Updated

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English Reference