The impact of the Tax Reform Act of 1986

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• The fact that TRA86 also reduced the corporate tax rate, which made it more attractive for businesses to invest in general.
• The fact that many states and localities began to offer tax breaks and other incentives to attract businesses to build or renovate sports facilities.

As a result, the development of sports facilities continued at a relatively brisk pace in the years following TRA86. In fact, some argue that the elimination of the ITC actually led to more innovation in the design and construction of sports facilities, as businesses were forced to find new ways to finance their investments. Whether TRA86 was a financial benefit or deficit to the development of sports facilities is a matter of debate. Some argue that the elimination of the ITC led to a decrease in the number of sports facilities being built, while others argue that the law had little impact on the overall trend of development. Ultimately, the impact of TRA86 on the development of sports facilities is likely to be debated for years to come. However, there is no doubt that the law had a significant impact on the way that businesses finance their investments in sports facilities.  

Sample Answer The Tax Reform Act of 1986 (TRA86) was a major piece of legislation that reformed the U.S. tax code. One of the provisions of TRA86 was to eliminate the investment tax credit (ITC), which had been a major incentive for businesses to invest in new equipment and facilities. The ITC had been particularly beneficial for the development of sports facilities, as it allowed businesses to deduct a portion of the cost of building or renovating a sports stadium or arena from their taxes. The elimination of the ITC was therefore expected to have a negative impact on the development of sports facilities. However, the impact of TRA86 on the development of sports facilities was not as negative as many had predicted. This was due to a number of factors, including: