Accelerated tax depreciation and farm investment: evidence from Michigan

Polzin, Leonard; Wolf, Christopher A.; Black, J. Roy

doi:10.1108/afr-05-2017-0038

Cited by 3 publications

(1 citation statement)

References 21 publications

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“…Hadrich et al (2013), for instance, found that Section 179 had the largest positive effect on purchases when compared to other factors. Similarly, Polzin et al (2018) used a model to show how accelerated depreciation used by commercial farms lowers the cost of capital and thus encourages equipment investment, and Williamson and Stutzman (2016) found statistically significant investment demand elasticities with respect to Section 179 expensing, whereas bonus depreciation, on average, had little impact on capital investment.…”

Section: Accelerated Depreciation and The Economymentioning

confidence: 99%

An Incentive for Investment Hurting Growth?: An Analysis of Section 179 Expensing and its Impact on Job Growth Through Related

2022

JAF

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This paper examines the economic impacts of Section 179 expensing in the Federal Tax Code. More specifically, it examines the impact of this incentive on automation and technological unemployment through a system dynamics simulation involving the professional industry, the manufacturing industry, and the rest of the United States economy. It also provides an overview of current trends towards automation, along with Recommendations for responsive tax policies to combat problems that could arise. Based on the results of the model and the analysis of current trends, both the professional and manufacturing industries face potential risks from automation, due to an increase in the Section 179 allowance, but the economy as a whole will benefit.

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Section: Accelerated Depreciation and The Economymentioning

confidence: 99%

An Incentive for Investment Hurting Growth?: An Analysis of Section 179 Expensing and its Impact on Job Growth Through Related

2022

JAF

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Technical and economic analysis, and benchmarking associated with dairy farms in Minas Geraiz, Brazil

et al. 2022

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Context Dairy operations have adopted benchmarking as a methodology to rank farms and establish target indexes; however, a connection between benchmarking and farms in the tropics is still warranted. Aims To evaluate the technical and economic quartiles based on farm return on assets (ROA) of three regions (Centre, South and Triangle) of Minas Gerais state, Brazil, and use them to establish benchmarks for dairy farms. Methods We collected data from 128 dairy farms (from January to December of 2019). All properties were part of the Educampo® project/Sebrae-MG. Farms were grouped into the Centre, South and Triangle regions, and subdivided into three groups within each region according to their ROA, where 25% of the farms that presented the lowest ROA were classified as the first quartile, 50% of farms were classified as interquartile and the 25% remaining farms were classified as the fourth quartile. Data were analysed as a randomised block design in a split-plot scheme, where the production systems were blocks, the regions were the main plots and the groups were the split plots. Differences were declared when P ≤ 0.10. Key results Total operating cost ($/L; $ – this currency is in US dollars and it applies throughout the paper); accrual operating cost ($/L); production costs, such as roughage ($/L), hired labour ($/L), percentage of concentrate and hired labour in accrual operating cost (%), were affected by regions and groups. The South and fourth quartile had the greatest total operating cost (0.24 $/L; 0.26 $/L) and accrual operating cost (0.27 $/L; 0.30 $/L), respectively. The majority of economic indexes were higher for Triangle than South and Centre, respectively. The fourth quartile had the greatest net margin (0.09 $/L), profit (0.07 $/L), return on assets (2%) and assets turnover rate (24%). Conclusions We suggest that benchmarks should be established by region, as there were too many variations among regions. In addition, this study demonstrated the importance of understanding the behaviour of the technical and economic indicators to stratify farms based on their return on assets. Implications We evaluated technical and economic indexes from three regions and stratified by ROA. Then, we established benchmarks by regions to better guide the producer in decision-making in dairy operations.

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Capital tax incentives and firm innovation: evidence from accelerated depreciation in China

Feng,

Zong

2024

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PurposeThis study aims to investigate the influence and impact mechanism of capital tax incentives on firm innovation.Design/methodology/approachThis study employs the difference-in-differences (DID) method, in conjunction with the exogenous impact of accelerated depreciation (AD) pilot policy. This study selects Chinese listed companies from 2010 to 2017 as the research sample.FindingsFirstly, AD exerts a substantial positive effect on the quantity and quality of the innovation output of firms, and the positive impact results primarily from heightened investment in fixed assets, particularly, machinery and equipment. Secondly, the influence of the policy is pronounced in non-state-owned enterprises, mature enterprises, less capital-intensive enterprises and non-high-tech industries, which all exhibit strong innovation incentives. Lastly, the tax incentive policy significantly stimulates firm innovation in the short term, but its long-term impact on innovation incentives lacks statistical significance.Originality/valueThis study highlights the significance of capital tax incentives in facilitating the innovation process in firms.

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Accelerated tax depreciation and farm investment: evidence from Michigan

Cited by 3 publications

References 21 publications

An Incentive for Investment Hurting Growth?: An Analysis of Section 179 Expensing and its Impact on Job Growth Through Related

An Incentive for Investment Hurting Growth?: An Analysis of Section 179 Expensing and its Impact on Job Growth Through Related

Technical and economic analysis, and benchmarking associated with dairy farms in Minas Geraiz, Brazil

Capital tax incentives and firm innovation: evidence from accelerated depreciation in China

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