A comparison of Column 3 and 4 of Table 1 shows how the concession of the tax holidays and depreciation allowances
affect the net present value of a firm.
Table 1 shows the present value of depreciation allowances
under the above stated rules for the period of study i.
In order to simplify the multiple depreciation allowances
, extra depreciation allowance
and industrial building allowance were abolished under the new income tax law and an initial depreciation at the rate of 40% was introduced.
Neither the cost of acquisition of depreciable property nor depreciation allowances
for such property are eligible for the credit, whether or not amounts of depreciation are deductible during the year and whether or not the cost of such property can be "expensed.
In the early 1980s, when space was in unusually short supply, commercial real estate received an additional push from the Economic Recovery Tax Act, which provided an acceleration of depreciation allowances
for capital goods.
Realizing this could happen, some taxpayers might have delayed purchases until 2002 to avoid possibly lower depreciation allowances
The builder also called on Rome to liberalize amortization and depreciation allowances
to kick-start what he sees as a stagnant situation in the domestic market.
Have the special depreciation allowances
for new capital equipment purchased before January 1, 2005, increased your level of spending on capital equipment since the beginning of 2004?
The depreciation allowances
for the excess basis are determined using the applicable recovery period, depreciation method and convention prescribed under section 168 for the replacement MACRS property at the time of replacement.
After Hiatt conducted a cost segregation study to take advantage of available accelerated tax depreciation allowances
, he helped the firm sort through the options to help finance the solar project through tax incentives, tax credits, utility company rebate programs and power purchase agreements.
In enacting ERTA, the Congress found that the pre-ERTA rules for determining depreciation allowances
were unnecessarily complicated and did not generate the investment incentive that was critical for economic expansion.
energy tax policy, the CEOs wrote, "[a]ccelerated depreciation allowances
and production-related tax credits are currently offered to incumbent fossil energy industries.