Meyer, Laurence H.; Prakken, Joel L.; Varvares, Chris P. - In: Journal of Economic Perspectives 7 (1993) 2, pp. 189-196
The investment tax credit (ITC) allows firms to reduce their tax liability by an amount related to their expenditures on equipment, and thus reduces the cost of acquiring capital. An investment tax credit can be introduced temporarily to stimulate investment as part of a countercyclical fiscal...