What Are the Different Types of Investment Tax Credit?

The investment tax credit refers to companies in certain industries that are encouraged to invest, which can deduct a certain percentage of their taxable expenses from the purchase of fixed assets or research and development, capital stock or new employment.

Investment tax credit

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The investment tax credit refers to companies in certain industries that are encouraged to invest, which can deduct a certain percentage of their taxable expenses from the purchase of fixed assets or research and development, capital stock or employment additions.

Investment tax credits and deductions.

In the case of investment tax credits, companies in certain industries encouraged to invest can deduct certain expenses from their taxable amounts for the purchase of fixed assets or research and development, capital stock or employment additions. From international practice, policy tools that provide tax credits for specific activities, that is, direct subsidies, are more effective than reducing tax rates.