Investment Tax Credit Effects On The United States And Canada, 1968-1985.

Abstract

A micro approach of matched pairs (U.S. and Canadian firms) was utilized to ascertain investment tax credit impacts, differentiating between “tax credit” and “non-tax credit” firms. Univariate tests were used to measure the significance of the investment rates between the matched pairs over the period 1968-1985. This research found little evidence that the investment tax credit was an effective stimulus for capital investment.