Tax credits are generally designed to encourage what kind of societal behaviors?

Tax credits are generally designed to encourage behaviors deemed beneficial to society or the economy. These incentives often aim to promote activities that have positive externalities, such as investing in renewable energy, education, health care, and other areas that can enhance the overall quality of life or encourage economic growth.

By providing financial incentives through tax credits, the government can stimulate certain behaviors among individuals and businesses, leading to increased investment in these beneficial activities. For example, energy-efficient investments may reduce environmental impact, while education-related credits can improve literacy rates and workforce skills.

The other options do not align with the primary purpose of tax credits. Unproductive spending does not yield societal benefits, and while investments in public infrastructure are crucial, tax credits specifically target behaviors that produce a broader societal advantage rather than funneling funds into traditional infrastructure projects. Lastly, tax evasion is illegal and counterproductive to the goals of tax policy, which aims to generate revenue for public services and support.