Incentive effects of bonus depreciation

David S. Hulse; Jane R. Livingstone

doi:10.1016/j.jaccpubpol.2010.06.008

Incentive effects of bonus depreciation

David S. Hulse
, Jane R. Livingstone

Accountancy

Producción científica: Article › revisión exhaustiva

22 Citas (Scopus)

Resumen

This study examines the effect on capital expenditures of " bonus depreciation," which was intended to stimulate such spending by allowing businesses to immediately expense a portion of the cost of qualified capital expenditures from late 2001 through 2004. After controlling for many previously documented determinants of capital expenditures, some of our results indicate that capital expenditures during bonus depreciation's availability were greater than those during the time it was not available, consistent with the expected effect. However, other results indicate that bonus depreciation had an insignificant effect on capital expenditures. These mixed findings generally persist through several sensitivity analyses. We interpret these results as weakly supportive evidence that Congress attained its goal of stimulating capital spending.

Idioma original	English
Páginas (desde-hasta)	578-603
Número de páginas	26
Publicación	Journal of Accounting and Public Policy
Volumen	29
N.º	6
DOI	https://doi.org/10.1016/j.jaccpubpol.2010.06.008
Estado	Published - nov 2010

Nota bibliográfica

Funding Information:
We thank the editors, two anonymous reviewers, and the workshop participants at the University of North Carolina at Greensboro, East Carolina University, Saint Louis University, the University of Kentucky, and a National Tax Association annual conference, as well as Dennis Chambers and Chris Bollinger for their helpful comments and advice. We also thank John Graham for providing us with his simulated marginal tax rates. Hulse acknowledges support from the Von Allmen Research Support Endowment and the Deloitte Professorship Endowment.

Financiación

We thank the editors, two anonymous reviewers, and the workshop participants at the University of North Carolina at Greensboro, East Carolina University, Saint Louis University, the University of Kentucky, and a National Tax Association annual conference, as well as Dennis Chambers and Chris Bollinger for their helpful comments and advice. We also thank John Graham for providing us with his simulated marginal tax rates. Hulse acknowledges support from the Von Allmen Research Support Endowment and the Deloitte Professorship Endowment.

Financiadores
Von Allmen Research Support Endowment

ASJC Scopus subject areas

Accounting
Sociology and Political Science

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author = "Hulse, \{David S.\} and Livingstone, \{Jane R.\}",

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N2 - This study examines the effect on capital expenditures of " bonus depreciation," which was intended to stimulate such spending by allowing businesses to immediately expense a portion of the cost of qualified capital expenditures from late 2001 through 2004. After controlling for many previously documented determinants of capital expenditures, some of our results indicate that capital expenditures during bonus depreciation's availability were greater than those during the time it was not available, consistent with the expected effect. However, other results indicate that bonus depreciation had an insignificant effect on capital expenditures. These mixed findings generally persist through several sensitivity analyses. We interpret these results as weakly supportive evidence that Congress attained its goal of stimulating capital spending.

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Incentive effects of bonus depreciation

Resumen

Nota bibliográfica

Financiación

ASJC Scopus subject areas

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