Center for Global Tax Policy

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

Temporary Full Expensing Arrives in the UK

March 17, 2023

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Capital Cost Recovery across the OECD

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Designing a Global Minimum Tax with Full Expensing

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Tax Policy After Coronavirus: Clearing a Path to Economic Recovery

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