The Investment Tax Credit (ITC) is a significant taxation provision that promotes certain types of investments by offering tax incentives for investing in qualifying assets, especially in areas like renewable energy, technology, and equipment.
An incentive in the USA that allows businesses to offset a portion of the cost of a depreciable asset against their income tax liability in the year of purchase, promoting investments in certain types of assets.
Personal property, also known as personalty, refers to movable items that are not attached to real estate and can include goods used in trade or business. Gains on the sale of personal property may be taxed favorably under Section 1231 of the Internal Revenue Code.
Recapture is the process of taxing at ordinary rates the portion of the gain on a sale that represents prior depreciation allowances or prior tax credits, thereby increasing the taxable income of the seller.
The Recapture Rule requires the repayment of tax benefits like depreciation and investment tax credits claimed earlier if specific conditions are not met in subsequent years.
