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accelerated cost recovery system
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accelerated cost recovery system

Also known as: ACRS
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Quick Summary

The Accelerated Cost Recovery System (ACRS) was a provision introduced by the Economic Recovery Tax Act of 1981 (ERTA) in the United States. ACRS changed the way businesses could depreciate assets. Instead of basing depreciation on an asset's useful life, ACRS set recovery periods determined by the Internal Revenue Service. This allowed businesses to recover their capital expenditures more quickly, providing a tax benefit intended to stimulate economic activity. The system was later modified by the Tax Act of 1986 to reduce its impact on federal revenues.1

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2 Britannica Sources
  1. Economic Recovery Tax Act of 1981
  2. library - Anglo-American Cataloguing Rules

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