A(n) __________ allows a firm to decrease its tax liability by a fraction of the investment it makes during a particular period.
A) tax on corporate profits
B) tax on retained earnings
C) investment tax credit
D) personal income tax

Question

Quizplus · Accepted Answer

An investment tax credit is a tax incentive that allows a firm to decrease its tax liability by a fraction of the investment it makes during a particular period. This encourages businesses to invest in new equipment or research and development, promoting economic growth. Options A, B, and D do not directly relate to this concept.

A(n) __________ Allows a Firm to Decrease Its Tax Liability