Incentive zoning means a zoning in which, an incentive such as a relaxation in zoning restrictions are offered to a developer for providing public benefits like building a desired public improvement, or building in areas that requires economic development. It is also termed as bonus zoning.
In Levitt v. Town of South Kingstown Planning Bd. of Appeal, 2001 R.I. Super. LEXIS 12 (R.I. Super. Ct. 2001), the court defined incentive zoning as: "The process whereby the local authority may grant additional development capacity in exchange for the developer's provision of a public benefit or amenity as specified in the local ordinances."