Cost Recovery

Cost recovery is the ability of businesses to recover (deduct) the costs of their investments. Although sometimes overlooked in discussions about corporate taxation, capital cost recovery plays an important role in defining a business’s tax base and can impact investment decisions—with far-reaching economic consequences. When businesses are not allowed to fully deduct capital expenditures, they spend less on capital, which reduces worker productivity and wages.

Featured Research

Prospects for Federal Tax Policy After the 2020 Election

November 10, 2020

Designing a Global Minimum Tax with Full Expensing

September 23, 2020

President Trump Outlines Second Term Tax Ideas

August 25, 2020

FAQ on Neutral Cost Recovery and Expensing

July 10, 2020

Empirical Evidence Shows Expensing Leads to More Investment and Higher Employment

May 19, 2020

Options for Improving the Tax Treatment of Structures

May 19, 2020

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