Tax breaks refer to provisions in the tax code that reduce a person's or company's tax liability. These can include deductions, credits, and exemptions that help individuals and businesses save money on their tax bills. Tax breaks are often used as an economic policy tool to encourage certain behaviors, such as investment in renewable energy or job creation. The idea is that by providing financial incentives through tax relief, people will be more likely to engage in activities that benefit the economy and society at large.