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Full Expensing

A tax rule that allows businesses to immediately deduct the entire cost of certain investments, like new equipment or machinery, in the year they are purchased or put into use, rather than spreading the deduction over several years.

Qualified Property

Specific types of business assets, such as certain tangible property (e.g., machinery, equipment, software) with a recovery period of 20 years or less, improvements to existing buildings, and certain plants, that are eligible for special tax treatment like full expensing.

Depreciation

A tax deduction that allows businesses to recover the cost of certain assets (like buildings, machinery, and equipment) over their useful life. It accounts for the wear and tear, deterioration, or obsolescence of an asset.

Amortization

Similar to depreciation, but it applies to intangible assets (like patents, copyrights, or research expenses). It's the process of spreading the cost of an intangible asset over its estimated useful life for tax deduction purposes.

Internal Revenue Code of 1986

The official body of U.S. federal tax laws, as last comprehensively revised in 1986, which is regularly amended by new legislation.

Gross Domestic Product (GDP) Deflator

A measure of the average level of prices of all new, domestically produced, final goods and services in an economy. It is used to adjust economic data for inflation, showing how prices have changed over time.