Number: RL32034
Title: The Jobs and Growth Tax Relief Reconciliation Act of 2003 and Business Investment
Authors: Gary Guenther, Government and Finance Division 
Abstract: In the congressional debate leading up to the enactment of Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA, P.L. 108-27), one of the arguments made on its behalf was that it would stimulate the economy in part by encouraging firms to invest more than they otherwise would to boost business investment by accelerating the tax treatment of depreciation for certain tangible assets. This report describes these measures and provides a hypothetical example of how they are intended to work in practice. In addition, it examines the links between accelerated depreciation and business investment and discusses their implications for domestic business investment in the short run.
Pages: 9
Date: Updated August 13, 2003