100 percent bonus depreciation

100 percent bonus depreciation, otherwise known as full expensing, accelerates the schedule at which firms can deduct their costs of capital from their tax liability. It encourages investment because firms value a present stream of income more than a future one.

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100 percent bonus depreciation

Featured Research

Options for Reforming America’s Tax Code 2.0

Evaluating Proposals to Increase the Corporate Tax Rate and Levy a Minimum Tax on Corporate Book Income

Prospects for Federal Tax Policy After the 2020 Election

Designing a Global Minimum Tax with Full Expensing

FAQ on Neutral Cost Recovery and Expensing

Empirical Evidence Shows Expensing Leads to More Investment and Higher Employment

Related Articles

Policymakers Offer Proposals to Fix Three Upcoming Tax Changes

U.S. Corporate Tax Expenditures and Effective Tax Rates in Line with OECD Peers

How the Tax Code Handles Inflation (and How It Doesn’t)

Expensing Is Infrastructure, Too

Combined Effect of a Higher Corporate Rate and Permanent Bonus Depreciation

Two Important Issues that Must Be Resolved in “Global Tax Reform”

Tax Policy Ideas in the Republican Study Committee Budget

Tax Policy Lessons from Down Under

Reviewing Options to Raise Tax Revenue and the Trade-offs for Economic Growth and Progressivity

Providing Full Cost Recovery for Investment and Lowering Taxes on Firms Are Best Options for Boosting Growth

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