Investment Tax Credit. The credit against federal income taxes provided by the Revenue Act for qualified depreciable assets after December 31, 1961, except for suspension periods October 10, 1966 to March 9, 1967, and April 18, 1969 to August 15, 1971. Tax Reform Act of 1986 repeals regular ITC for property placed in service after December 31, 1985.
A tax credit, which is an amount deducted directly from federal income tax otherwise payable, calculated as a fixed percentage of eligible expenditures on scientific research and experimental development.