Search

The Low-Income Housing Tax Credit (LIHTC) program can potentially help expand access to neighborhoods with low poverty and economic opportunities for low-income households. Prior studies described that LIHTC units are in neighborhoods with relatively high poverty, but with improvements in recent years. Beyond cross-sectional analyses, scholars have not extensively looked at the movements of tenants. It remains unclear whether the program creates opportunities for low-income households to move into better neighborhoods than they previously lived in or reinforces segregation by encouraging moves to similarly or more disadvantaged neighborhoods. Using an extensive consumer database, I am tracking the movements of households who move into new LIHTC properties in California. The experimental findings show that residents experience, on average, increases in poverty exposure by up to six percentage points over other moved low-income renters. Tenants see lower levels of neighborhood amenities than at their previous addresses. The construction of LIHTC housing can increase the chance of households moving into minority-concentrated areas. [ABSTRACT FROM AUTHOR]

Numerous managerial and corporate finance perspectives suggest mutual tax advantages when depreciation is transferred from an asset's user to a lessor, creating a perceived loss of tax revenue for the government. This study delves deeper into the lease versus buy decision and its ramifications on government tax revenue. It goes beyond tax rate discrepancies, exploring how factors like lessor‐lessee borrowing rate differences, asset lifespan, depreciation, and lease payment schedules impact tax revenues, both analytically and numerically. The paper establishes a strong theoretical foundation, emphasizing positive‐sum games involving lessees, lessors, and governments in individual deals. Government benefits from leasing vary across asset classes, market structures, depreciation timelines, credit quality, tax credits, and business cycles. The proposal is that the aggregate impact at the federal level could be positive, negative, or neutral across all leasing deals. These insights surpass conventional knowledge, offering valuable perspectives for finance and accounting educators, students, practitioners, and policymakers. [ABSTRACT FROM AUTHOR]

The Low-Income Housing Tax Credit program is the largest housing production subsidy in the U.S. Two types of credit, known as the 9% credit and the 4% credit, are subject to different allocation criteria. The 4% program has been flying under the radar of policymakers, housing advocates, and researchers since its inception. Whereas newly constructed 9% units are increasingly sited in lower poverty neighborhoods, 4% investment is made in high-poverty and low-opportunity neighborhoods. This paper reveals that states have not actively influenced the locational outcomes of 4% projects credit until recently. Policy levers have a more substantial impact on the outcomes of the 9% program. However, the results indicate that increased competition and strong policy levers have enabled some states to influence the siting outcomes of 4% projects. As states have significant power over tax credit allocations and additional financing required to enable the 4% credit, they could consider explicitly using this credit to further fair housing goals and help low-income households reach opportunities. However, careful consideration is needed to balance these goals with neighborhood revitalization. [ABSTRACT FROM AUTHOR]

The year 15 presents a critical moment for the preservation of Low-Income Housing Tax Credit (LIHTC) properties. While there have been studies looking into the year-15 challenges in weak housing markets, there has been little research on strategies and contexts that have led to successful preservation outcomes. While different localities may require different strategies depending on local contexts, there are common challenges shared by LIHTC properties due to the program structure. This paper aims to examine how New York City has been responding to some of these common challenges through its LIHTC (Year-15) Preservation Program which has been quite successful in preserving expiring LIHTC properties. Through a combination of data analysis on LIHTC and New York City's Year-15 Program, interviews with government officials, and an examination of approximately 530 land documents of 107 expiring LIHTC properties in New York City, this study takes an in-depth look into the development process, strategies, and outcomes of the program. By doing so, future challenges and lessons are highlighted that are helpful for New York City and beyond. [ABSTRACT FROM AUTHOR]

This paper delves into the critical role of tax credits, specifically Sections 45Q and 45V, in the financing and economic feasibility of low-carbon-intensity hydrogen projects, with a focus on natural-gas-based hydrogen production plants integrated with carbon capture and storage (CCS). This study covers the current clean energy landscape, underscoring the importance of low-carbon hydrogen as a key component in the transition to a sustainable energy future, and then explicates the mechanics of the 45Q and 45V tax credits, illustrating their direct impact on enhancing the economic attractiveness of such projects through a detailed net present value (NPV) model analysis. Our analysis reveals that the application of 45Q and 45V tax credits significantly reduces the levelized cost of hydrogen production, with scenarios indicating a reduction in cost ranging from USD 0.41/kg to USD 0.81/kg of hydrogen. Specifically, the 45Q tax credit demonstrates a slightly more advantageous impact on reducing costs compared to the 45V tax credit, underpinning the critical role of these fiscal measures in enhancing project returns and feasibility. Furthermore, this paper addresses the inherent limitations of utilizing tax credits, primarily the challenge posed by the mismatch between the scale of tax credits and the tax liability of the project developers. The concept and role of tax equity investments are discussed in response to this challenge. These findings contribute to the broader dialogue on the financing of sustainable energy projects, providing valuable insights for policymakers, investors, and developers in the hydrogen energy sector. By quantifying the economic benefits of tax credits and elucidating the role of tax equity investments, our research supports informed decision-making and strategic planning in the pursuit of a sustainable energy future. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Planning Education & Research is the property of Sage Publications Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We make seven direct intra-brand comparisons between legacy carmakers' electric vehicle (EV) and gaspowered vehicle who achieved top ten most-efficient electric vehicles in America. We find six out of the seven EVs will be able to breakeven the higher price relative to their gas counterparts within reasonable gas price range, electricity charge range, and federal government tax credit for buying EVs. We further find that federal government tax credit is the most effective policy tool that will induce new car buyers to choose EVs over comparable same-brand gas vehicle though other green initiatives such as solar panels on owner's roof tops and below-market-interest-rate (BMIR) loans are effective as well. [ABSTRACT FROM AUTHOR]

Historically, researchers and policymakers alike recognized the risk of poverty among large families, but family size is often neglected in the contemporary literature. This article revives an examination of the connections between family size and poverty risk for children with a focus on Germany. We take a child‐centered perspective by analyzing a sample of 13–14 year‐old children from the National Educational Panel Study (NEPS). First, we provide a detailed overview of the welfare and tax policies aimed at large families in Germany. Next, we estimate the poverty risk and prevalence for children in large families (looking at families with 3+ and 4+ children). Finally, we discuss how the policy and socio‐economic context interacts with the risk of poverty. We identify that the means‐tested social assistance scheme penalizes large families, while the child benefit would only acknowledge higher need of middle‐income families with three or more children. [ABSTRACT FROM AUTHOR]

Copyright of Critique of Law: Independent Legal Studies / Krytyka Prawa: Niezalezne Studia nad Prawem is the property of Akademia Leona Kozminskiego and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Governments worldwide have spent billions of dollars on monetary incentives for consumers to encourage the adoption of eco-friendly ("green") products. However, there is little consensus on the effectiveness of delayed monetary incentives with complex structures, such as tax credits in increasing green product adoption and reducing carbon emissions. The literature is also limited on the mechanisms through which monetary incentives work in general. We address these issues by studying the impact of tax credit incentives on green and nongreen vehicle sales in the U.S. auto industry. A tax credit incentive could boost green vehicle sales through cost savings on the vehicle's price. However, the incentive may prove ineffective because of important barriers to adoption (e.g., long charging times for electric cars). To measure the sales and emissions impacts of tax credits, we study incentive changes in South Carolina and Oregon via various quasi-experimental approaches and assess the generalizability of our key findings to Colorado. Unlike recent studies showing an insignificant or negative correlation between tax credits and electric vehicle adoption, our analyses show that unit sales of incentivized plug-in hybrid electric vehicles (PHEVs) increase by an average of 3.7% (up to 52.7% in some counties) following a $2,000 incentive. In contrast, PHEV sales remain unchanged after the incentive's termination, implying a positive net sales effect. We also explore the underlying mechanisms for the incentive's impact by examining various purchase funnel stages. In the awareness stage, the incentive's positive effect on PHEV demand peaks around the consumers' tax-filing period. As for the consideration stage, our analyses of online consumer search indicate that the incentive does not expand the consumer pool considering PHEVs. In the conversion stage, the incentive generates more sales for PHEVs in counties where (i) consumers are more likely to have PHEVs in their consideration sets regardless of the incentive (i.e., Democratic counties) and (ii) consumers value cost-saving more (i.e., counties with lower middle income). Also, the heightened demand for PHEVs following the incentive stems from the substitution from gasoline vehicles with high fuel efficiency. We estimate the average cost of reducing carbon emissions through tax credits to be $109 per ton, which is less expensive than tax rebates for conventional hybrids and subsidies for residential solar panels. This paper was accepted by David Simchi-Levi, Special Section of Management Science on Business and Climate Change. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2023.4781. [ABSTRACT FROM AUTHOR]

Pension provision in our country has undergone many reform processes directly and as part of the financial and social system of the state. The relative stability of the pension system is successfully tested even during martial law. The pension system of Ukraine is historically complex, three-level, regulated by many laws and instructions, and divides citizens into certain categories. One of the three levels is a voluntary accumulation system, which is represented by non-state pension funds (NPF) with different structures. The article examines the accumulation model with historical data on a typical example, builds regression models, and uses econometric analysis to extrapolate data for the next decade. According to the results of the study, it was found that regularly saving 10% of the average salary can preserve the standard of living of a retired citizen compared to the period of work, especially when using the tax credit mechanism.

Copyright of Economic & Political Thought / Myśl Ekonomiczna & Polityczna is the property of Lazarski University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The paper discusses the issue of selected tax law institutions that constitute a form of tax credits and other tax incentives relating directly to the immovable property market in a broad sense, which have been implemented into the Polish legal system in recent years. The article includes an analysis of the legal aspects of the functioning of the relevant regulations, the statutory objectives of their introduction, as well as possible disputed issues revealed in the course of their application raised in judicial practice. The authors attempt to answer the research question whether the tax reliefs used in Poland adequately fulfil the tasks set for them by the legislator and how they influence the real estate market in Poland. [ABSTRACT FROM AUTHOR]

Innovation technologies penetrated all spheres of economy in many countries of the world and Uzbekistan is one of them. The reforms being carried out in social and economic life of the country require innovation ideas and technologies. The article analyzes positive overseas experience and practice of using tax systems, which can promote the development of innovation activity and shows the impact of taxation on innovation activity. The subject of the research is mechanism of tax motivation of innovation activity at enterprises of real sector of economy. The author proposes steps aimed at improving economic efficiency of tax motivation in the field of innovation activity of enterprises in the Republic of Uzbekistan, as taxation system plays the most important role in supporting innovation. Mechanisms of tax motivation include creation of such conditions that can promote demand for innovative products and investment into new technologies.

This paper delves into the critical role of tax credits, specifically Sections 45Q and 45V, in the financing and economic feasibility of low-carbon-intensity hydrogen projects, with a focus on natural-gas-based hydrogen production plants integrated with carbon capture and storage (CCS). This study covers the current clean energy landscape, underscoring the importance of low-carbon hydrogen as a key component in the transition to a sustainable energy future, and then explicates the mechanics of the 45Q and 45V tax credits, illustrating their direct impact on enhancing the economic attractiveness of such projects through a detailed net present value (NPV) model analysis. Our analysis reveals that the application of 45Q and 45V tax credits significantly reduces the levelized cost of hydrogen production, with scenarios indicating a reduction in cost ranging from USD 0.41/kg to USD 0.81/kg of hydrogen. Specifically, the 45Q tax credit demonstrates a slightly more advantageous impact on reducing costs compared to the 45V tax credit, underpinning the critical role of these fiscal measures in enhancing project returns and feasibility. Furthermore, this paper addresses the inherent limitations of utilizing tax credits, primarily the challenge posed by the mismatch between the scale of tax credits and the tax liability of the project developers. The concept and role of tax equity investments are discussed in response to this challenge. These findings contribute to the broader dialogue on the financing of sustainable energy projects, providing valuable insights for policymakers, investors, and developers in the hydrogen energy sector. By quantifying the economic benefits of tax credits and elucidating the role of tax equity investments, our research supports informed decision-making and strategic planning in the pursuit of a sustainable energy future.

Politicians promise infrastructure investment via tax credits by involving outside investors, but uncertainty affects the demand for and price of tax credits. We theoretically model and empirically estimate how macroeconomic and federal tax policy uncertainty separately affect the demand for tax credits using data from the Low-Income Housing Tax Credit program. By exploiting reapplications, our identification strategy is simple: federal tax credit prices depend on changes in federal tax policy uncertainty while state tax credit prices do not. Consistent with the theoretical expectations we derive, investors view tax credits as an insurance vehicle causing tax credit prices to increase in response to higher levels of policy uncertainty. As expected, we also confirm that tax credit prices decrease in response to an increase in macroeconomic uncertainty. Our results shed light on the efficiency of using tax credits to finance low-income housing and other types of public infrastructure. [ABSTRACT FROM AUTHOR]

Copyright of Railway Construction Technology is the property of Railway Construction Technology Editorial Office and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Starting this year, we are witnessing a significant modified tax regime for corporate tax paying microenterprises/companies that want to obtain tax credit for the sponsorships made. For the sponsorships granted starting from 2022 there is no longer the possibility of reporting the amounts undeducted from the enterprises’ income tax/corporate tax. By exception, Law No. 322/2021 provides transitional provisions, in so far as the carryovers are still possible until 2028 inclusively for the sponsorships granted until the end of 2021. If the companies provide sponsorships, and their amount is lower than the available tax credit, the remaining difference may be redirected in maximum six months from the legal term for submitting the annual corporate tax statement/the microenterprises income tax statement corresponding to the fourth quarter. The option to redirect the remaining difference can be made by the taxpayer by filling in and submitting Form 177, and this redirection is also made for sponsorships. With some exceptions provided by the Order of the Chairman of the National Agency of Fiscal Administration No. 1679/2022, the beneficiaries of the amount redirected from the tax must be enrolled on its payment date in the Register of entities/units of worship for which tax deductions are granted.

This policy brief proposes a tax credit with related qualifying conditions that address the serious deficiencies related to abuse and neglect found in the current for-profit long-term care space. It also seeks to address the lack of government accountability for huge outlays of taxpayer dollars in the form of Medicare and Medicaid payments to these facilities, much of which results in maximizing profits for wealthy investors at the expense of vulnerable individuals with limited voice. Our proposed policy arrangement alters the organizational DNA of the for-profit organization, including the moderation of profit, to circumvent the existing financial incentives that are driving the mistreatment and malpractice so evident in the system. It aims to achieve this through four policy components including social financing, a sliding dividend cap, employee-ownership, and limits on complex corporate structures which are tied to a tax credit. This multi-faceted policy idea is intended to start the discussion around a possible path forward.

Using South Korean panel data from 2008 to 2019 and censored quantile regression method, this study calculates the effects of different tax incentives on charitable contributions. We observe price elasticity under two different tax‐benefit systems in South Korea and find that, first, taxpayers tend to be more sensitive to tax incentives under a tax deduction system than a tax credit system. The price elasticity gap between a tax deduction and tax credit is approximately −2.3 to −1.0. Second, we show the existence of heterogeneity in taxpayers' behaviour: the price elasticity of charitable contributions exhibits a convex shape, where more significant donors have lesser reactions to tax incentives. We further show that socioeconomic contexts, such as income, gender, marital status, and education, affect people's attitudes. In sum, the results are as expected: tax deductions work more efficiently than tax credits. [ABSTRACT FROM AUTHOR]

Ecological theories of crime have found that perceptions of neighborhood safety are influenced by a broad range of building features. Yet most research on how building design impacts perceptions of neighborhood safety for low-income renters was developed in a period of affordable housing defined by dense, segregated, and brutalist-inspired public housing. Research on low-income rental design has yet to focus on how residents in Low-Income Housing Tax Credit (LIHTC) properties perceive their levels of neighborhood safety, and how that may be influenced by building design. This study uses survey responses from 652 LIHTC residents in Ohio paired with design attributes and crime data to test how residents' perceptions of neighborhood safety are related to building design features, controlling for neighborhood violent and property crimes. We find that design features minimally impact residents' perceived neighborhood safety, and this does not vary significantly by resident characteristics. We suggest this contrast with past literature may relate to the design and maintenance standards associated with LIHTC properties. We recommend that housing finance agencies continue to encourage or incentivize affordable housing developers to design housing with features to increase natural surveillance, access control, and territoriality, and to focus on fostering community for LIHTC residents. [ABSTRACT FROM AUTHOR]

The Superbonus is an Italian tax relief policy aimed at encouraging residential buildings' energy and seismic efficiency. Only the energy part of the legislation is analyzed here. The tax deductions of the Superbonus exceed the nominal value of the project, making the interventions convenient even for economically disadvantaged citizens and small construction companies. However, the measure has only found wide diffusion in single-family housing, while it proceeds more slowly for multi-family buildings, where procedural complexities greatly amplify the risk of the financial failure of projects. The purpose of the paper is to analyze how urban planning and technical and administrative problems affect the Return on Investment (ROI) when the Superbonus is applied to multi-unit buildings. Therefore, a financial risk analysis is conducted from the perspective of an ordinary Energy Service Company (ESCo), which assumes the burden of carrying out energy efficiency measures. The property considered has all the requirements of an ordinary multi-family building for which the Superbonus is generally used. The works considered are also those carried out most frequently. The study shows that only three out of five energy interventions are financially sustainable. This result is in line with the data provided by the Italian Revenue Agency. [ABSTRACT FROM AUTHOR]

The article discusses the taxation of IRPJ and CSLL on tax credits resulting from unfavorable judicial decisions against the Federal Public Treasury. There are different views on the timing of taxation, and there is still no consensus on the subject. The research analyzed academic papers on the offsetting of tax credits in the last 5 years and found various approaches, such as tax transaction programs and the collection of tax credits through the tax execution procedure. The law allows the offsetting of tax credits with own debts, provided they are of the same kind or have the same constitutional destination. The operationalization of the offsetting of federal taxes is regulated by Normative Instruction No. 2,055/2021. The Brazilian Federal Revenue is obliged to comply with judicial decisions that determine the offsetting, even if provisional. The divergence solution from COSIT deals with the taxation of amounts refunded to the legal entity taxpayer by virtue of a judicial decision in an undue payment repetition action. Amounts refunded as improperly paid taxes will be subject to IRPJ and CSLL taxation if they have been accounted for as deductible expenses in previous periods. There is no incidence of Cofins and Contribution to PIS/Pasep on the recovered amounts. The interest on the recovered undue tax is considered new revenue and is also subject to taxation. The solution also addresses the recognition of revenue by the cash basis and the accrual basis. The injunction granted in a Writ of Mandamus allows the offsetting of credits discussed in another declaratory action before the final judgment. However, this injunction does not result in an increase in assets for the taxpayer and loses its effects if the action is not favorable to him. If the injunction is revoked [Extracted from the article]

This policy brief proposes a tax credit with related qualifying conditions that address the serious deficiencies related to abuse and neglect found in the current for-profit long-term care space. It also seeks to address the lack of government accountability for huge outlays of taxpayer dollars in the form of Medicare and Medicaid payments to these facilities, much of which results in maximizing profits for wealthy investors at the expense of vulnerable individuals with limited voice. Our proposed policy arrangement alters the organizational DNA of the for-profit organization, including the moderation of profit, to circumvent the existing financial incentives that are driving the mistreatment and malpractice so evident in the system. It aims to achieve this through four policy components including social financing, a sliding dividend cap, employee-ownership, and limits on complex corporate structures which are tied to a tax credit. This multi-faceted policy idea is intended to start the discussion around a possible path forward. [ABSTRACT FROM AUTHOR]

• We study formate species, a product of CO 2 electrochemical reduction, as an alternative carbon carrier for sequestration and EOR • Formate solution injection yielded greater levels of oil recovery and net carbon storage • Carbon-bearing species resided in the dense aqueous phase without having to rely on petrophysical trapping mechanisms • In establishing carbon tax credit policies and regulations, policymakers should include alternative carbon carriers. As carbon capture, utilization, and storage (CCUS), carbon-dioxide enhanced oil recovery (CO 2 EOR) has inherent shortcomings, such as inefficient oil recovery and carbon storage, and low storage security with mobile CO 2. This paper presents a techno-economic-environmental analysis of using formate species, a product of CO 2 electrochemical reduction, as an alternative carbon carrier for sequestration and EOR in a carbonate oil reservoir in the Gulf of Mexico Basin. CO 2 injection, water-alternating-CO 2 injection, and aqueous formate solution injection were compared using a compositional reservoir simulation model and an economic calculator. Formate solution injection yielded greater levels of oil recovery and net carbon storage, where the carbon-bearing species resided in the dense aqueous phase without having to rely on petrophysical trapping mechanisms (structural and capillary). The enhanced oil production, net carbon storage, and storage security can be promoted by providing formate-based CCUS with more incentives (e.g., greater tax credit) in comparison to CO 2 -based CCUS for EOR and the manufacture of chemicals and products. In establishing carbon storage incentive policies and regulations, policymakers should include alternative carbon carriers. [ABSTRACT FROM AUTHOR]

Copyright of Revista del ICDT is the property of Instituto Colombiano de Derecho Tributario and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Tax collection and management is an important cornerstone to safeguard a country's financial strength, and it is also a key task to realize the modernization of a country's tax governance. This study examines the effect of tax-collection mechanism and management on technological innovation in China from 2007 to 2020. By using a fixed effect model, the findings indicate that a higher intensity of regional compulsory tax collection and management rises the level of technological innovation of enterprises. Strengthening tax collection and management is more conducive to raising the level of technological innovation of midwestern enterprises, non-high-tech enterprises and enterprises in a poor market environment. The concrete impact mechanism shows that tax collection and management improve the level of enterprises and technology innovation by using a tax credit-rating system and enhancing enterprises' information transparency; the application of the Golden Three system has been more conducive to strengthening tax collection and management to enhance the level of enterprises' technological innovation. The findings of this study have policy implications for China regarding rising innovation through tax collection [ABSTRACT FROM AUTHOR]

In order to determine the problematic aspects of VAT refund at the current stage, it is proved in the article that VAT is a budget-forming tax in the system of Ukraine’s state finance, which significantly affects the financial and economic activity of economic entities. Therefore, an important aspect of the research within the scope of this publication is the determination of the essence of the VAT refund; outlining its features in the domestic taxation system; identification of problematic aspects of the VAT refund, including the one during the martial law period in the country; search for ways to improve tax administration in terms of the VAT refund. In order to solve the tasks, the normative requirements for reimbursement of VAT from the budget in the relevant directions are considered in the article; the total volume of budgetary VAT refunds in Ukraine in the dynamics of years, the specific weight of refunds in certain regions of Ukraine, the amounts of declared VAT refunds that were rejected as a result of tax control and the reasons for such deviations are analyzed. When verifying the correctness of the VAT refunds, the problematic aspects faced by the control authorities are identified, and the operations of taxpayers that lead to improper VAT refunds due to unjustified overestimation of the VAT tax credit (for example, when making fictitious exports, importing goods at reduced prices, when creating fictitious enterprises, etc.). At the same time, it is noted that due to the introduction of a more transparent VAT refund mechanism using the Register of applications for the refund of the budgetary VAT refund, the administration of this tax has improved, which contributed to the reduction of corruption and the creation of equal conditions for all VAT payers. For improving the VAT refund mechanism, it is proposed to develop a set of measures in the tax administration system aimed at strengthening control over the legality of VAT refund applications based on documentary confirmation of VAT amounts. It is stated that at the same time it is worth taking into account the legislative innovations regarding VAT administration and constantly studying the dynamics of tax changes during martial law. [ABSTRACT FROM AUTHOR]

In this paper, we analyse the impact of the implementation of a child tax credit in Austria in 2018. We combine microsimulation techniques, labour supply modelling and dynamic general equilibrium modelling to make an ex ante evaluation of the reform, accounting also for behavioural responses of individuals. We show that although the macroeconomic effect of the Austrian reform is expected to be relatively small, accounting for feedback effects on a micro‐level is very important, especially when analysing socioeconomic and policy‐relevant indicators, such as poverty and inequality. When focusing on the distributional implications and the impact on poverty, our analysis highlights that the first‐round effects of the child tax credit substantially underestimate the increase in household income for households with children. Additionally, we find that when accounting for second‐round effects, the loss in tax revenues is partly offset. The estimated self‐financing effect of the reform is estimated to be about 13 per cent. Our results also indicate that part of the associated tax decrease can be potentially captured by the employer, meaning that gross wages are expected to fall slightly. Therefore, in the medium term, some households without children might suffer a small reduction in their disposable income. Overall, our analysis highlights the importance of accounting for second‐round effects when analysing tax reforms ex ante. [ABSTRACT FROM AUTHOR]

The Earned Income Tax Credit (EITC) has been supporting the incomes of low-income working families since 1975. It is now a major anti-poverty program for both adults and children. This brief provides an overview of how the Earned Income Tax Credit supports families in a context of wage stagnation and encourages work. Together with the Child Tax Credit, the EITC lifted 9.2 million people, including 4.8 million children, out of poverty in 2015. It has long-lasting benefits on maternal and children’s health and on children’s development. The EITC has therefore positive effects beyond its direct cash value to recipients.

A taxpayer has a different interpretation about compensation for capital loss in the USA with taxable income in Indonesia from the tax authority (DGT). This compensation is related to foreign income tax credit. Tax court states that if the capital loss is recognized in calculating the foreign income tax credit, the capital loss must be considered in calculating the taxable income. By using the case in the tax court decision in Indonesia and analysis of existing regulations, this paper finds that are multiple interpretations in a regulation. The capital loss in the USA only can be compensated in the USA, not in Indonesia. This paper finds that besides the actual tax payments, the calculation of foreign income tax credit can use the tax rates in the tax treaty and effective tax rate from tax payment in a foreign country. The existing tax regulations should be revised to reduce multiple interpretations.

Providing a fiscal function, tax calculations are one of the key processes in the activities of enterprises. A study of the practice of using modern software products for accounting automation showed that even powerful decision support systems such as SAP cannot provide ease, efficiency and clarity of conducting business operations in compliance with historically established tax laws and accounting procedures. At the same time, VAT calculations are the most laborious, since they significantly depend on the peculiarities of the tax legislation of each country. The article reveals the key directions for improving the process of making calculations for VAT using the SAP ERP system. Taking into account practical experience, the main difficulties in complying with the regulatory requirements of Ukrainian legislation in accounting of business transactions in SAP ERP are highlighted. The features of tracking the first event in VAT-related transactions with the display of accounting procedures on the example of product sales were disclosed, taking into account the technical features of the information system. The methodological and technical reasons for the impossibility of full automation of tracking the first event were shown, based on the practice of Ukrainian enterprises. The standard process for calculating a tax credit for VAT in the SAP ERP system was outlined. It was determined that the existing procedures not only meet the requirements of the current legislation, but also provide significant efficiency in the rapid achievement of correct reporting indicators. To expand the automation of the accounting process, authors' substantiated recommendations were provided, some of which were implemented in the SAP program, in particular, the mass creation of accounting documents in the system and the assignment of status for electronic tax documents in individual cases determined by the current regulatory framework.

About 30% of single mothers in the US live at or below the poverty line. Poverty is associated with higher risk of depression and substance use. We investigated associations between state earned income tax credit (EITC) policies and reported depressive symptoms and alcohol misuse among birthing parents who responded to Pregnancy Risk Assessment Monitoring Survey spanning 1990–2017. Nearly half of birthing parents reported no more than a high school education (45.4%; 95% CI: 45.3%–45.6%). An estimated 28.5% of birthing parents reported binge drinking in the three months prior to conception (95% CI: 28.3–28.8%). Among birthing parents, each 10 percentage-point increase in the generosity of state EITC relative to the federal EITC was associated with a lower prevalence of binge drinking (prevalence ratio = 0.96; 95% CI: 0.93–0.99) prior to conception. This association was more pronounced among birthing parents with no more than high school education (prevalence ratio = 0.92; 95% CI: 0.88–0.97). There was no association between state EITC and number of reported depressive symptoms prior to conception or after birth, except among those with lower educational attainment (prevalence ratio = 0.94; 95% CI: 0.89–0.99). Anti-poverty policies such as EITC may reduce the burden of alcohol misuse, especially among people with children.

The rapid process of reforming and improving the tax system contributes to the emergence of new objects for scientific research. The introduction of the electronic register of tax invoices, the electronic administration system of VAT led to the need for changes in the implementation of accounting procedures, the accrual and payment of tax, drawing up and registration of tax invoices, settlements with the budget. The abovementioned requires a study to determine specific features of VAT accounting, systematization of individual stages of its implementation. The position of the taxpayer as a permanent user of the electronic administration system at the time of financial accounting is reflected. The process of documentation depending on the essence of economic operations and the position of business entities, the features of primary accounting for the tax on value added and subsequent generalization in such a type of calculation is investigated. The process of forming VAT-accounting, which is used in Ukraine with the introduction of technological support is presented schematically. An approach to accounting for a tax credit and a tax liability for VAT is given, depending on the terms of payment and taking into account the needs of the organization of analytical accounting, which is associated with the possibility of registering a tax invoice with a date different from the date of its preparation. The features of accounting for the object of research are considered. Displayed detailing on the maintenance of VAT calculation when preparing the formation of tax reporting. The conditions for calculating the repayment of the tax liability and the value-added tax credit after the filing of the tax return were tracked. As a result of the work carried out, the stages of the process of accounting, reporting on VAT and its payment were systematized, as well as the expression of an opinion from an accounting point of view regarding the effectiveness of automation of tax accounting for taxes and its impact on the tax system, financial accounting at enterprises, as well as the formation of unresolved issues before legislation to ensure a high level of functioning of this system. [ABSTRACT FROM AUTHOR]

The relevance of the research is due to the need to improve the mechanism of state financial support for industrial production in the framework of stimulating the innovative development of the economy. The subject of the research is tax incentives for enterprises in the system of state financial support for industrial production.The purpose of the research is development of measures to improve the efficiency of tax incentive instruments for industrial enterprises based on the assessment of their effectiveness in modern conditions.When the national economy is unstable due to international sanctions against Russia, as well as internal factors, the need to form a core of industrial production capable of ensuring economic growth through the introduction of advanced technologies is of particular importance. In this regard, the article systematizes state measures aimed at supporting the activities of industrial enterprises used in the Russian economy and in the Republic of Adygea, in particular. The best foreign experience in tax incentives for industrial production in comparison with the Russian model of applying tax incentives has been summarized; tax expenses of the budgets of the budget system of the Russian Federation by types of taxes and types of state programs related to the development of industry have been analyzed; priority measures have been developed to reduce the tax burden of industrial enterprises.

The Superbonus is an Italian tax relief policy aimed at encouraging residential buildings’ energy and seismic efficiency. Only the energy part of the legislation is analyzed here. The tax deductions of the Superbonus exceed the nominal value of the project, making the interventions convenient even for economically disadvantaged citizens and small construction companies. However, the measure has only found wide diffusion in single-family housing, while it proceeds more slowly for multi-family buildings, where procedural complexities greatly amplify the risk of the financial failure of projects. The purpose of the paper is to analyze how urban planning and technical and administrative problems affect the Return on Investment (ROI) when the Superbonus is applied to multi-unit buildings. Therefore, a financial risk analysis is conducted from the perspective of an ordinary Energy Service Company (ESCo), which assumes the burden of carrying out energy efficiency measures. The property considered has all the requirements of an ordinary multi-family building for which the Superbonus is generally used. The works considered are also those carried out most frequently. The study shows that only three out of five energy interventions are financially sustainable. This result is in line with the data provided by the Italian Revenue Agency.

This research analyzes the effects of tax imposed on capital flight in the industrial import sector of Riobamba – Ecuador. The Ecuadorian government imposes taxes on capital flight to protect the economy from capital outflow. The aim of the research is to determine the appropriate use of tax money to optimize business resources. Data collection and analysis of the current corporate structure led to a financial diagnosis of the companies. Besides a comparative analysis on the use of tax money according to current regulations was made in order to disclose the effects on companies’ profitability. The results show that using this tax as a credit is the best option for the taxpayer.