Firms deducting the asset's full cost at the time of acquisition from taxable income is called investment tax credit.

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Investment tax credit is a tax incentive that allows firms to deduct a percentage of the cost of a capital investment from their tax liability. Deducting the full cost of the asset at the time of acquisition is not investment tax credit but is called a "full expensing" or "immediate expensing" provision, which is currently allowed under certain tax laws in some countries like the United States.

Firms Deducting the Asset's Full Cost at the Time of Acquisition