Tax Cuts and Jobs Act

The Effect of the Tax Cuts and Jobs Act on Leasing: Evidence from the Past with Implications for the Future

This study reveals the impact of Tax Cuts and Jobs Act (TCJA) of 2017 on the $1.3 trillion equipment finance industry.

• Review of taxation of leasing.
• Literature on the TCJA’s effects on investment, and academic literature on the effects of bonus deprecation on investment and interest deductibility.
• Aggregate trends in leasing behavior before and after the TCJA’s implementation.
• Original micro-level data analysis of firm-specific leasing and investment decisions in response to the TCJA and its provisions, and what that might mean as less of capital investment is available to be depreciated under bonus depreciation.