DO CAPITAL TAX INCENTIVES ATTRACT NEW BUSINESSES? EVIDENCE ACROSS INDUSTRIES FROM THE NEW MARKETS TAX CREDIT

The effectiveness of tax incentives on charitable donation expenditures in Canada is explored, and the analysis is extended to compare the effectiveness across different donation sectors. Price elasticities are estimated with data from the 2007 Canada Survey of Giving, Volunteering and Participating. Results suggest that specific charitable sectors are affected differently by Canada’s tax credit system. The findings have implications for public policy.

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Tax incentives for R&D in the context of the development of fiscal space

Fìnansi Ukraïni ◽

10.33763/finukr2021.10.081 ◽

2021 ◽

Vol 2021 (10) ◽

pp. 81-97

Author(s):

Nataliya FROLOVA ◽

Keyword(s):

Small And Medium Enterprises ◽

Value Added ◽

Tax Incentives ◽

Aircraft Industry ◽

Tax Credit ◽

Tax Exemptions ◽

Fiscal Space ◽

Tax Benefits ◽

Basic Features ◽

Medium Enterprises

The article deals with the main R&D expenditure based tax incentives such as tax credit and enhanced allowances in the context of the development of fiscal space due to their impact on innovative activities of loss-making, small and medium enterprises as well as startups. The author disclosed basic features of R&D expenditure based tax incentives in comparison with tax exemptions and accelerated depreciation. Cross-country comparisons in OECD revealed that it is often a case when SMEs and startups enjoy R&D tax credit and enhanced allowance with higher rates. In addition, they can also claim full reimbursement of unused tax benefits for R&D while large companies can only count on partial or even non-reimbursement of unused tax benefits and limited carry over period. Implied tax subsidy rates on R&D are analyzed through different OECD countries, as well as through enterprises different in size and profitability. In 2019 the largest R&D tax benefits were offered to profitable SMEs in France (ITSR was 43%) and Portugal (ITSR was 39%). The ITSR methodology is used to work out scenarios of introduction of R&D expenditure -based tax incentives in Ukraine. Calculation results are presented. The state of R&D tax incentives in Ukraine in the case of aircraft industry is analyzed. The introduction R&D expenditure -based tax incentives is argued as a replacement of tax exemptions which are currently used as a measure for R&D promotion in the aircraft industry in Ukraine in terms of improvement of R&D tax support efficiency and spur successful development of high value-added industries as an important prerequisite for the development of fiscal space in Ukraine.

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TAX REGULATION OF INNOVATIVE ACTIVITIES OF BUSINESS ENTITIES IN UKRAINE

Odessa National University Herald. Economy ◽

10.32782/2304-0920/1-86-19 ◽

2021 ◽

Vol 26 (1(86)) ◽

Author(s):

Lyudmyla Berezovskaya ◽

Inna Dolzhenko

Keyword(s):

Tax Incentives ◽

Comparison Method ◽

The State ◽

Innovative Activity ◽

Innovation Activity ◽

Tax Credit ◽

Economic Activities ◽

Business Entities ◽

Tax Payments ◽

Tax Regulation

The successful functioning of business entities and their achievement of strategic advantages in a competitive environment largely depend on the effectiveness of their innovative activities. Therefore, an important area of tax regulation in the country should be to stimulate the attraction of investments for the introduction of innovations into economic activities. The purpose of the article is to assess the tax regulation of innovative activities of business entities in Ukraine and to develop proposals for its improvement. To achieve this goal, a systematic approach, an abstract-logical method, an economic-statistical and a comparison method were used. The authors analyzed the state of legislative regulation of innovative activity in Ukraine and identified its shortcomings regarding the interpretation of the concept of «innovative activity». The methods of tax incentives for innovative activities, contained in the legislation of Ukraine, have been investigated. It is proved that, unlike foreign countries, tax support for innovative projects in Ukraine has not yet received a stimulating character and has not become a means of activating the process of modernizing the material and technical base of enterprises. It was stated that according to the indicators of the European Innovation Board (EIT), the position of Ukraine is defined as the crane «Innovator that is being formed». It is noted that it is possible to start the process of innovative renewal of the national economy, subject to the introduction of a policy of tax incentives and the construction of an effective taxation model for innovative activities of a stimulating nature. The state of foreign investment and innovation activity of business entities in Ukraine has been analyzed. The possible directions of using tax instruments to stimulate innovative technologies have been substantiated, which include tax holidays for startups, the use of accelerated depreciation, a tax credit for the payment of payroll taxes, the introduction of a tax credit for income tax, a deferral of tax payments and carry forward of losses.

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Low-Income Housing, New Markets, Rehabilitation, and Other Tax Credit Programs

Joint Ventures Involving Tax-Exempt Organizations ◽

10.1002/9781118705537.ch13 ◽

2013 ◽

pp. 939-1100 ◽

Cited By ~ 1

Keyword(s):

Low Income ◽

Tax Credit ◽

New Markets ◽

Credit Programs ◽

Low Income Housing

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Supply-side subsidies to improve food access and dietary outcomes: Evidence from the New Markets Tax Credit

Urban Studies ◽

10.1177/0042098017740285 ◽

2018 ◽

Vol 55 (14) ◽

pp. 3234-3251 ◽

Cited By ~ 3

Author(s):

Matthew Freedman ◽

Annemarie Kuhns

Keyword(s):

Low Income ◽

Supply Side ◽

Tax Credit ◽

New Markets ◽

Household Level ◽

Food Shopping ◽

Food Retailers ◽

The Us ◽

Short Run ◽

Purchasing Patterns

In an effort to improve diet and health outcomes, policymakers have increasingly turned to supply-side subsidies aimed at encouraging investment by supermarkets and other food retailers in low-income areas. This article examines whether the US federal government’s New Markets Tax Credit (NMTC) has affected the entry of retail food establishments, and in turn food shopping and purchasing patterns, in low-income communities. To identify the impacts of the programme, we take advantage of a discontinuity in NMTC funding generated by the formula used to determine the eligibility of census tracts for investment under the programme. We find that the NMTC Program has had modest, but positive impacts on supermarket entry in low-income communities. Based on household-level scanner data, there are no detectable effects on households’ food purchasing patterns in affected neighbourhoods, at least in the short run.

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