noun
A monetary grant or reward given to encourage a specific activity, such as research, business, or environmental action.
政府は省エネ設備の導入に奨励金を出している。
The government provides subsidies for the installation of energy-saving equipment.
この研究には大学から奨励金が支給された。
This research was funded by an incentive grant from the university.
報奨金 is a reward or bonus given after an achievement, whereas 奨励金 is given beforehand or during an activity to promote it.
Compound of 奨励 (しょうれい, 'encouragement') and 金 (きん, 'money').