# incentive

/ˌɪnˈsɛnɪv/ (US) · /ɪnsˈɛntɪv/ (UK)

Source: https://englishreference.com/word/incentive
Updated: 2026-06-20

## Senses

### 1. motivation or reward

noun · CEFR B2 · General-service

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

For teachers: 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.

### 2. encouraging action

adjective · CEFR C1 · Formal · Academic

describing something that is designed to encourage you to act.

For teachers: 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.

## Examples

- The company offers a cash incentive for perfect attendance.
- The government introduced a tax incentive to encourage more homeowners to install solar panels on their roofs.
- Economists argue that without a clear financial incentive, private firms are unlikely to invest the substantial capital required for long-term infrastructure projects in developing regions.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.