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Businesses may receive a(n) _______ for investing in new plants and equipment.

1) tax break
2) loan
3) fine
4) penalty

1 Answer

4 votes

Final answer:

The correct answer is 1) tax break. Businesses may receive a tax break for investing in new plants and equipment. A tax break is a reduction in the amount of taxes that a person or business has to pay.

Step-by-step explanation:

The correct answer is 1) tax break.

Businesses may receive a tax break for investing in new plants and equipment.

A tax break is a reduction in the amount of taxes that a person or business has to pay. It is a form of government incentive to encourage certain behaviors or investments.

For example, the federal government offers tax breaks for research and development (R&D) activities. This means that businesses can deduct a portion of their R&D expenses from their taxable income, effectively reducing their overall tax liability.

Tax breaks can help businesses save money and stimulate economic growth by allowing them to invest more in productive assets and activities.

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User Allmhuran
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