The Accelerated Cost Recovery System (ACRS) is a depreciation method introduced by the Economic Recovery Tax Act of 1981 that allows taxpayers to recover the cost of an asset over a specified life that is shorter than the actual useful life of the asset, thereby reducing taxable income in the earlier years of an asset's life.
A federal law enacted to stimulate economic recovery by appropriating $790 billion for infrastructure projects, providing tax benefits, and granting funds to states and localities.
A former UK scheme designed to encourage established companies to invest in the full-risk ordinary shares of companies similar to those qualifying under the Enterprise Investment Scheme (EIS). Companies investing through the CVS obtained corporation tax relief (at 20%) on the amount invested, provided that the shares were held for at least three years. The scheme was discontinued in 2010.
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.
The mortgage interest deduction is a tax incentive provided to homeowners, allowing them to reduce their taxable income by the amount of interest paid on a qualified home loan. This deduction is a substantial financial benefit for many taxpayers, promoting homeownership.
The Rehabilitation Tax Credit encourages the preservation of historic buildings through tax incentives. It offers a 10% tax credit for the rehabilitation costs of certain older, non-residential buildings and a 20% tax credit for certified historic structures.
A tax abatement is a reprieve from a tax obligation, varying from partial to complete forgiveness. Governments often grant tax abatements as incentives for real estate or industrial development.
A tax holiday is a government incentive program that offers a temporary reduction or elimination of tax payments for businesses, providing economic impetus for specific activities such as export growth or new industry development.
The Tax Reform Act of 1986 (TRA 1986) represents the most comprehensive tax legislation since the onset of World War II. It aimed to ensure that individuals with equal incomes paid equal taxes, minimized the role of tax incentives in addressing social and economic issues, and primarily used taxes to generate revenues.
