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1 Alex Muresianu, How Expensing for Capital Investment Can Accelerate the Transition to a Cleaner Economy 1 (2021)

handle is hein.taxfoundation/hexcap0001 and id is 1 raw text is: How Expensing for Capital Axi Investment Can Accelerate the Transition to a Cleaner Economy FISCA L Alex Muresianu FACT Research Assistant No. 739 Jan. 2021 Key Findings Expensing for capital investments would increase new investment and capital stock turnover, supporting the replacement of old capital with more environmentally friendly structures, machinery, and equipment. Lowering the cost of investment would eliminate the tax bias against more capital-intensive energy efficiency improvement projects. Neutral cost recovery for structures would increase apartment building construction, which benefits the environment thanks to both higher energy efficiency in apartments relative to single-family homes, and through increased density, which reduces emissions from transportation. These benefits are in addition to expensing's large impact on economic growth. The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and global levels. We are a 501(c)(3) nonprofit organization. ©2021 Tax Foundation Distributed under Creative Commons CC-BY-NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 taxfoundation.org