scholarly journals The Surprising Incidence of Tax Credits for the Toyota Prius

2011 ◽  
Vol 3 (2) ◽  
pp. 189-219 ◽  
Author(s):  
James M Sallee
Keyword(s):  
Economic Burden ◽  
Tax Incentives ◽  
Tax Credits ◽  
Search Frictions ◽  
Tax Regimes ◽  
Endogenous Selection ◽  
State Incentives ◽  
Toyota Prius

This paper estimates the incidence of tax incentives for the Toyota Prius. Transaction microdata indicate that both federal and state incentives were fully captured by consumers. This is surprising because Toyota faced a binding production constraint, which suggests that they could have appropriated the gains. The paper proffers an explanation based on an intertemporal link in pricing that stems from search frictions, which has the unconventional implication that statutory burden influenced economic burden. The paper develops a bounding estimator to account for endogenous selection into preferential tax regimes that may be useful in other contexts. (JEL H22, H24, L11, L62)

scholarly journals Tax Credits and Small Firm R&D Spending

2020 ◽  
Vol 12 (2) ◽  
pp. 1-21 ◽  
Author(s):  
Ajay Agrawal ◽  
Carlos Rosell ◽  
Timothy Simcoe
Keyword(s):  
Policy Change ◽  
Small Firm ◽  
Scientific Research ◽  
Tax Incentives ◽  
Tax Credits ◽  
Private Firms ◽  
Experimental Development ◽  
Wage Bill ◽  
Percent Increase ◽  
The Impact

In 2004, Canada changed the eligibility rules for its Scientific Research and Experimental Development (SRED) tax credit, which provides tax incentives for R&D conducted by small private firms. Difference-in-difference estimates show a 17 percent increase in total R&D among eligible firms. The impact was larger for firms that took the tax credits as refunds because they had no current tax liability. Contract R&D expenditures were more elastic than the R&D wage bill. The response was also greater for firms that invested in R&D capital before the policy change. (JEL D22, G32, H25, L25, O32, O38)

Problems of tax incentives for development of small innovative enterprises at institutions of higher education

2014 ◽  
Vol 8 (9) ◽  
pp. 89-98
Author(s):  
Михаил Кучин ◽  
Mikhail Kuchin ◽  
Елена Егорова ◽  
Elena Egorova ◽  
Людмила Черникова ◽  
...  
Keyword(s):  
Innovation Policy ◽  
Tax Incentives ◽  
Developed Countries ◽  
Public Authorities ◽  
High Expectations ◽  
Funding Sources ◽  
Research Institutes ◽  
Tax Regimes ◽  
National Environment ◽  
Tax Benefits

One of the main areas of the economy currently is the development of innovative businesses. To help with this, the state is using direct and indirect methods of support and tax incentives for science, technology and innovation businesses. Tax incentives have become one of the main tools of innovation policy of developed countries, which are used not only to support and stimulate innovation, but also to create a favorable national environment in order to attract foreign R & D. Tax incentives are one of the most flexible tools. The system of tax incentives does not require the creation and maintenance of a separate administrative apparatus, since it is based on the existing tax system, which reduces the costs of its application to public authorities. Tax incentives are more efficient due to the stability of tax benefits in comparison to direct subsidies, since the levels of subsidization are reviewed annually and may vary considerably, and the tax rates change much less frequently. In modern conditions high expectations are associated with medium and small innovative enterprises at universities and research institutes, they play the role of the engine of the country in an innovative track of development. Thanks to this special purpose medium and small enterprises have tax benefits that would increase their investment attractiveness. The needs of innovative businesses at universities and research institutes are reflected in the Tax Code of Russia. For example, the recently adopted amendments to Article 346.12 of the second part of the Tax Code, which increase the possibility of small innovative enterprises on the use of different tax regimes and tax benefits. However, small and medium-sized innovative enterprises have still many problems, most of which are associated with funding sources.

scholarly journals An assessment of R&D tax credits and their role towards innovation within Irish industry

2020 ◽  
Vol 39 (1) ◽  
pp. 34-46
Author(s):  
James Kennedy ◽  
Frank Barry
Keyword(s):  
Research And Development ◽  
Tax Policy ◽  
Tax Incentives ◽  
Tax Credits ◽  
Firm Level ◽  
Empirical Examination ◽  
Advanced Economies ◽  
Irish Government ◽  
Recent Trends

AbstractThe Irish Government has identified research and development (R&D) and innovation as among the key pillars of growth within the economy. To achieve this growth, R&D tax incentives, which are adopted in advanced economies, are set into policy to encourage firms to innovate, thus, making companies more competitive and productive. One of the key enablers to driving R&D is a well-designed, competitive and sustainable tax policy to support the activity. However, evidence on the effectiveness of R&D tax incentives for innovation is largely anecdotal and the influence of innovation on firm-level taxation is still underexplored, in terms of and empirical examination. This paper sets out to review the recent trends and views of industry regarding R&D tax credits.

scholarly journals The peculiarities of tax incentives for Industrial and innovative clusters in Russia

2021 ◽  
pp. 35-49
Author(s):  
Dinara Ibragimova
Keyword(s):  
Socioeconomic Development ◽  
Tax Incentives ◽  
Industrial Clusters ◽  
Special Economic Zones ◽  
Special Contribution ◽  
Tax Regimes ◽  
Tax Benefits ◽  
Economic Zones ◽  
Stimulation Of

This article examines the available approaches towards tax incentivization of the activity of subjects in the industrial and innovative clusters. Analysis is conducted on the tax benefits that could be received by the residents of preferential regimes, such as special economic zones, free economic zones, territories of advanced socioeconomic development within the framework of membership in the Skolkovo Innovation Center, as well as regime for the participants of innovative scientific and technological centers. The peculiarity this research is that tax incentives are examined from the perspective of their relevance on each stage of the lifecycle of an industrial product and innovation. The author's special contribution lies in the selected approach towards assessment of the effect of preferential tax regimes from the standpoint of the development of industrial and innovative clusters. The main conclusions are as follows: 1. Currently existing territorial regimes of taxation are aimed primarily at attraction of new investments to the Russian regions and include a range of tax support measures effective for the limited period on the first stage of lifecycle of the product or innovation; 2. From the perceptive of stimulation of participation in the industrial clusters, the available preferential regimes contain attractive and essential benefits for manufacturing industrial products, however, traditional regimes, such as special economic zones and territories of advanced socioeconomic development, no longer meet the needs of innovative companies. For stimulation of participation in the innovative clusters, tax regime for the Skolkovo Innovation Center currently seems most attractive. 3. Due to the fact that the existing regimes of special economic zones, free economic zones, territories of advanced socioeconomic development are aimed at the attraction of investment and focused on the first years of implementation of the project. For incentivization of the qualitative development of industrial and innovative clusters it is reasonable to assess the possibility of more even distribution of tax benefits or introduce other long-term methods of support.

scholarly journals Tax incentives for industrial production in the system of public financial support

2021 ◽  
Vol 2 (98) ◽  
pp. 110-123
Author(s):  
O. O. Nepochatenko ◽  
◽  
P. K. Bechko ◽  
N. V. Lisa ◽  
S. A. Ptashnyk
Keyword(s):  
Industrial Production ◽  
Tax Incentives ◽  
World Market ◽  
Tax Credits ◽  
Theoretical Justification ◽  
Tax System ◽  
Industrial Enterprises ◽  
Analysis And Synthesis ◽  
Tax Benefits ◽  
Tax Holidays

The article provides a theoretical justification for tax incentives for industrial enterprises under market conditions of their activities. According to modern economic theory, which is the basis of the domestic tax system, the most effective are horizontal and vertical structures to stimulate industrial production, able to increase production and sales of its competitiveness in world markets, and businesses to operate on self-financing and self-sufficiency. A set of general scientific and special methods of scientific cognition was used to solve the tasks set in the process of research. Application of a systematic approach, methods of induction and deduction, analysis and synthesis, which made it possible to comprehensively and comprehensively consider the theoretical foundations of tax incentives for industrial enterprises, to determine the results of the application of horizontal and vertical organization of tax incentives. When systematizing the results of tax incentives for industrial enterprises, methods of scientific generalization, analysis and synthesis were chosen. Given the importance of tax incentives for industrial enterprises in modern conditions in the domestic tax system, there are a number of unresolved issues, which are essentially debatable on the theoretical justification of this problem and its practical solution aimed at increasing production and sales of industrial products, expanding markets. The results of the study show that horizontal tax incentives are more acceptable, as the situation on the world market is changing very quickly, and business needs certainty, provided that the state determines which segments of the national economy are a priority. The efficiency of tax holidays, preferential rates, investment tax credits and free trade zones are more promising for the development of industrial production at the horizontal level. With a vertical strategy for the development of industrial production, priority is given to export-oriented investment tax credits, in particular tariff or tax benefits, investment benefits. The proposed measures of tax stimulation of industrial production will stimulate the development of enterprises using the strategy of modernization of the production base through the renewal of fixed assets, the introduction of advanced advanced technologies, financing of scientific developments. These measures can ensure synergies, especially if the equipment to be purchased by industrial enterprises will be domestically produced.

scholarly journals An Analysis of Socio-Economic Objectives of India’s Tax Policy

2015 ◽  
Vol 2 (2) ◽  
Author(s):  
K V Bhanu Murthy
Keyword(s):  
Tax Policy ◽  
Tax Incentives ◽  
Tax Credits ◽  
State Governments ◽  
Investment Climate ◽  
Public Authorities ◽  
Tax System ◽  
Effective Instrument ◽  
The Government ◽  
Business Entities

The Indian tax system has successfully mobilised resources to finance administrative, welfare and developmental activities of public authorities. Besides being the main source of revenue for both Central and State Governments, it is an effective instrument to realise various socio-economic objectives of national policies. Further, tax policy is an important determinant of the investment climate in a country. This paper looks at the socio-economic objectives that the tax policy intends to achieve along with the steps taken to restructure the tax system in accordance with these objectives. Tax laws in India are replete with various exemptions, concessions, deductions, allowances, tax credits etc. to promote a host of desirable economic and social activities. These tax incentives encourage individuals and business entities to undertake activities desired by the government.

The Effect of State Income Tax Apportionment and Tax Incentives on New Capital Expenditures

2003 ◽  
Vol 25 (s-1) ◽  
pp. 1-25 ◽  
Author(s):  
Sanjay Gupta ◽  
Mary Ann Hofmann
Keyword(s):  
Income Tax ◽  
Fixed Effects ◽  
Capital Investment ◽  
Manufacturing Sector ◽  
Tax Incentives ◽  
Corporate Income Tax ◽  
Capital Expenditures ◽  
Tax Burden ◽  
Tax Regimes ◽  
Statutory Tax Rate

This study examines how variations in states' corporate income tax regimes affect new capital investment by business. Using U.S. state-aggregated data from 1983 to 1996, we find in pooled and fixed-effects regressions that new capital expenditures by corporations in the manufacturing sector are decreasing in the income tax burden on property (measured as the product of the statutory tax rate and the property factor weight), and increasing at a decreasing rate in investment-related tax incentives. The effect of the income tax burden on property is more pronounced for states mandating unitary taxation or the throwback rule. Triangulating our empirical findings with prior analytical and simulation studies suggests the following hierarchy for the relative importance of major attributes of state corporate income tax regimes: the unitary or throwback requirement is most influential on incremental capital investment, followed by apportionment weights and tax rates, and, finally, investment-related incentives.

The Diffusion of State Tax Incentives for Business

2015 ◽  
Vol 45 (3) ◽  
pp. 334-363 ◽  
Author(s):  
Stephanie Leiser
Keyword(s):  
Tax Competition ◽  
Event History Analysis ◽  
Tax Incentives ◽  
Tax Credits ◽  
Empirical Literature ◽  
Tax Rates ◽  
Tax Incentive ◽  
History Analysis ◽  
State Tax ◽  
Incentive Policies

Tax competition scholars are increasingly recognizing that states compete with each other not only by manipulating tax rates but also by adopting tax incentives. However, there is a comparative lack of empirical literature exploring why states adopt different types of tax incentives. This article draws on the literatures on tax competition and policy diffusion to develop hypotheses about what factors motivate states to adopt business tax incentives, paying particular attention to the influence of other adopting states. It uses event history analysis methods to test hypotheses regarding the adoption of four state tax incentive policies: investment tax credits, apportionment formula changes, research and development tax credits, and job creation tax credits. Regression results show that factors that influence adoption decisions are largely inconsistent across the four incentive types. However, analyses of duration dependence find evidence consistent with the idea that states are “racing to the bottom.”

scholarly journals IN THE GREEN CLASSROOM—TAX POLICY OF ENVIRONMENTAL TAX RULES AND INCENTIVES: NEW DIRECTIONS IN TEACHING AND RESEARCH

2017 ◽  
Vol 12 (4) ◽  
pp. 163-173
Author(s):  
Annette Nellen
Keyword(s):  
Tax Policy ◽  
Green Building ◽  
Tax Incentives ◽  
Tax Credits ◽  
Federal State ◽  
Environmental Tax ◽  
Fuel Tax ◽  
New Directions ◽  
State And Local ◽  
Local Levels

INTRODUCTION There is no shortage of tax rules that address energy and natural resources in some manner. There are taxes on most types of fuel, tax credits for energy saving devices, and various tax incentives to encourage specified activities such as use of LED lighting or energy efficient heaters. In addition, numerous proposals are offered annually by lawmakers at the federal, state and local levels that also address conservation, energy and innovation in conservation and energy-efficiencies. How do we know if existing rules and proposals are appropriate for a tax system? Principles of good tax policy can be applied to them to identify strengths, weaknesses and how to improve the rules and proposals. This article explains the principles of good tax policy, provides an example of their application and makes several suggestions of how this type of analysis can be incorporated into any classroom learning on green building topics. This exercise is not only for students with tax knowledge, but also engineers, scientists, architects, environmentalists, as well as everyone in our roles of citizen and voter.

scholarly journals ON THE EXPEDIENCY OF GRANTING TAX EXEMPTIONS IN THE SPHERE OF SETTLEMENTS IMPROVEMENT

2018 ◽  
Vol 4 (4) ◽  
pp. 321-325
Author(s):  
Olena Syniavska ◽  
Olga Pokataieva ◽  
Pavlo Pokataiev
Keyword(s):  
Waste Management ◽  
Value Added ◽  
Tax Incentives ◽  
The State ◽  
Regulatory Framework ◽  
Active Part ◽  
Corporate Profit ◽  
Tax Exemptions ◽  
Tax Regimes ◽  
Cis Countries

The purpose of the paper is to investigate the procedure of provision of economic incentives in the sphere of settlements improvement in the context of elements of development, in particular, the provision of tax privileges. Methodology. The survey is based on the analysis of the elaboration of the regulatory framework in the CIS countries regarding the application of tax privileges to economic entities that take an active part in the sphere of settlements improvement in terms of elements of development. The norms, which provide tax incentives in the Tax Codes of the Republics of Uzbekistan, Kazakhstan, the Kyrgyz Republic, the Russian Federation, and Ukraine, are considered. Provided proposals for the improvement of the tax legislation of these countries in the direction of application of tax incentives to natural and legal persons are based on the statement of the need to enhance the ecological component of a settlement, maintain its aesthetic appearance, create comfortable conditions for people living in it. Results. In the course of the investigation of the state policy on waste management in the CIS countries and analysing the modern legal and regulatory framework towards the provision of tax incentives to economic entities, which operate in the sphere of waste management, or towards natural persons, who acts in a private procedure, the necessity to grant them benefits on corporate profit tax, value-added tax, personal income tax, land fees is substantiated. Studying the state and regional policy on planting of greenery on the territory of settlements as an element of improvement, it is justified the necessity to grant tax privileges to enterprises, institutions, organizations, which take an active part in the process of planting by virtue of corporate profit tax, and to allow the use of special tax regimes for the enterprises the main activity of which is cultivation and realization of ornamental plants. It is proposed to consider the possibility to relive economic entities belonging to representatives of small business from payment of property tax for small outdoor amenities. Practical implications. The presented proposals for granting tax exemptions to economic entities that take an active part in the improvement of settlements will contribute to increase of motivation for the promotion of waste sorting, the manufacture of containers, garbage trucks, facilities of waste sorting plants; the intensification of activities on waste recycling and manufacture of products made of secondary raw materials; planting of greenery on the territory of settlements, which will contribute to betterment of the appearance of the settlements, creation of favourable, comfortable conditions for the population, improvement of the ecological situation. Value/originality. The article gives action-oriented proposals to bring modifications to the Tax Codes of the CIS countries towards the simulation of natural and legal persons to invest funds in sanitary clean-up of the territory from domestic waste for the implementation of rational waste management and for actions aimed at waste collecting.

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