Details

Autor(en) / Beteiligte

• MASSE, I.
• HANRAHAN, J. R.
• KUSHNER, J.

Titel

THE EFFECT OF CHANGES IN TAX LEGISLATION ON THE PURCHASE/LEASE DECISION IN THE PUBLIC SECTOR

Ist Teil von

• National tax journal, 1988-03, Vol.41 (1), p.123-130

Ort / Verlag

Chicago: National Tax Association

Erscheinungsjahr

1988

Quelle

Business Source Ultimate

Beschreibungen/Notizen

• Changing tax legislation has affected the purchase/lease decisions for all 3 levels of government. Before the Economic Recovery Tax Act (ERTA) of 1981, government leasing was financially attractive, especially at the state and local levels because, if the government leased an asset, the lessor could claim depreciation and other expenses for tax purposes. The ERTA effectively halved the depreciation life of most machinery and equipment. However, the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982 offset some of these benefits by modifying the investment tax credit. Leasing then became less attractive for state and local governments and more attractive for the federal government. The Deficit Reduction Act of 1984 further reduced the benefits of leasing for all levels of government, but the Tax Reform Act of 1986 had a small but beneficial effect on leasing in the public sector.