Tax Incentives and Business Investment: Evidence from German Bonus Depreciation

Investment Tax Credits and the Response of Firms

“…However, the percentage of special depreciation allowances was the same for all firms and did not induce any differential treatment be- 40 The program is very similar to those studied in House and Shapiro (2008), Maffini et al (2016) and Zwick and Mahon (2017). Eichfelder and Schneider (2014) analyze the German program comparing firm in East Germany with those in West Germany.…”

Did Uganda's corporate tax incentives benefit the Ugandan economy or only the firms?

“…Most of what we know about their impact stems from studies in developed countries; case studies are available for the majority of industrialized nations (Clark 2001;Klemm 2010). Research that specifically examines the effects of accelerated depreciation on a country's manufacturing sector suggests a positive correlation between tax incentives and economic growth (Eichfelder and Schneider 2014;Ohrn 2019). Studies have demonstrated that implementing special economic zones (SEZ), a concept widely adopted in Asia, leads to increased investment and productivity (Ishida 2009;Wong and Chu 1984).…”