Selected International Depreciation Rates by Asset and Country

Publication Date: January 2007

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

Type:

Abstract:

The depreciation provisions in the U.S. tax system are of recurring interest to Congress. More than 100 bills were introduced in the 109th Congress that addressed some aspect of depreciation. Concerns about the U.S. depreciation system tend to begin with the criticism that updates to the system have not kept pace with technological advancements of the assets for which it is utilized to account. Proponents of updating the depreciation system point to a number of problems, including inefficient investment incentives, high administrative costs, increased disputes based on difficulties in compliance, and, in the macroeconomy, impaired competitiveness and economic growth. New perspectives on the policy options for the U.S. depreciation system may be gained through examining the systems used by other countries. This report provides information on the depreciation systems of selected European Union countries (France, Germany, Ireland, Spain, and the United Kingdom) by presenting depreciation rates for buildings; computers; expensable assets; motor vehicles; patents; plant, equipment, machinery, and tools; and software.