Definition of tax subsidy. A reduction in the amount of tax that a business has to pay, allowed by the government for a particular purpose, especially to create jobs. (Financial Times Lexicon)
A subsidy is a benefit given to an individual, business or institution, usually by the government. It is usually in the form of a cash payment or a tax reduction. The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or an economic policy. (Investopedia)
"You're also subscribing to a rate plan that historically had a subsidy built in," Greengart says. (VPR)
He became simultaneously the head of a country estate and executive chairman of an opera company employing 400 people without a penny of public subsidy. “I was acting general director for nine months. That was a very good steep learning curve for me, before [general director] David Pickard arrived in 2001. I was just thrown in at the deep end and I had to sink or swim.” (The Telegraph)
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