uncertainty, because investors use simplified models for computing an investment project's tax base and anticipate the actual tax … effects of tax base and tax rate uncertainty, the investment's tax payment is modelled as a stochastic process that may be … correlated with the project's cash flows. I show that increased uncertainty of tax payments has an ambiguous impact on investment …

are offset by tax benefits arising from debt financing. Allowing partial deduction of capital cost is thus a necessary … condition for investment neutrality to hold. …

This paper examines the history, scope, and types of investment tax credits (ITC`s) implemented in the United States …