| 1. | something that incites or tends to incite to action or greater effort, as a reward offered for increased productivity. |
| 2. | inciting, as to action; stimulating; provocative. |
I would say it's rarely used as an adjective. As a noun, it might be used like this: The school will be collecting canned food for the community food bank. As an incentive , the teachers have promised that the class that brings in the most food will have no homework that day.
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Spacewater–adjectiveThe incentive aspect/quality/features of the new legislation is/are sure to bring results.
2. inciting, as to action; stimulating; provocative.