To incentivize foreign direct investment and economic development, governments have provided relief from income taxation in many creative ways. In addition to offering the traditional full tax holiday for a specified time period, governments now also provide reduced tax rates, exemptions, and similar special deductions. Some of these benefits are generally available to any enterprise operating in the jurisdiction; others require application or qualification procedures. Determining whether these government tax incentives are tax holidays for accounting purposes, or whether they should receive some other income tax accounting treatment, can be a challenge. In some cases, the incentives may represent government grants or subsidies that fall outside of income tax accounting. This Tax Accounting Insight provides a comparison of the potentially relevant accounting models and highlights some of the factors to consider in determining which model applies.