rebate

REE-beyt /ˈriːbeɪt/
nounverbB2TOEFLIELTS
generalbusiness

A partial refund to someone who has paid too much money for tax, rent, or a utility.

A rebate is often an incentive or retroactive discount (like an energy-efficiency tax rebate), whereas a refund is simply returning overpaid money.

The story behind the word. From Old French 'rabatre', meaning 'to beat down' or 'deduct' (from 're-' 'back' + 'abatre' 'to beat down'). It originally referred to knocking down a price or reducing an amount owed.

Word relationships

  • refund: A refund is the return of overpaid money, while a rebate is specifically a return of money as an incentive or discount.
  • surcharge: A surcharge is an additional charge, whereas a rebate is a return of money.

Commonly confused with

  • discount: A discount is applied at the time of purchase, reducing the initial price, while a rebate is returned after the full price has been paid.

Word family

  • rebated (verb): Past tense of rebate.

Collocations

  • tax rebate
  • energy rebate
  • claim a rebate
  • mail-in rebate

Example sentences

  • "The state offered a rebate for homeowners who installed solar panels." Green Energy Incentives

Memory hook

Re-bate: they 'bate' (beat) down the price and give you cash back. Beating down the price to give money back.

When not to use

Do not use to describe a salary or regular payment; it is always a return of money previously paid.

Fun facts

  • Governments often use tax rebates to stimulate the economy, sending checks directly to citizens to encourage consumer spending during recessions.

Related words

refund, deduction

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