The Effects of Asset Class Life, Economic Condition, and Firm Size on Capital Expenditures

• In Event: Taxation

Abstract

The purpose of this paper is to examine how the new tax act may affect the purchase of capital expenditures. Bonus depreciation has been extended to allow an immediate 100% deduction for eligible property that also now includes used property. We will use a between-subjects experimental design to explore whether this change in the tax law will incentivize taxpayers to increase their capital expenditures.

Authors

• Malcolm Mueller, Ohio University

• Frances Ann Stott, Ohio

• Aaron Wilson, Ohio University