Explore the the impact of the scheduled phase-out of bonus depreciation on effective tax rates for new investment. Bonus depreciation will decline from 50% in 2016 and 2017 to 40% in 2018, 30% in 2019, and will expire on December 31, 2019. Calculations do not include the effect of tax reform on firms' financing behavior or the economy as a whole.

Concept by: Jason DeBacker

Development by: Brendan Collins

Open Source Software used: Cost of Capital Calculator for tax computations. Bokeh for visualizations.

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MATT JENSEN

+1 202 862 5941

matt.jensen@aei.org