line with the rest of the world on this issue. Similarly, the accelerated depreciation of machinery & equipment would become irrelevant due to the move toward taxation based on business cash flow and the immediate write-off of capital expenditures. Once the depreciation from legacy investments has run off, then depreciation should become irrelevant for tax purposes. We also highlight the deduction for US production activities (section 199) due to it being specifically highlignted by the Blueprint proposal as no longer being necessary under the new tax policies. Both the Blueprint and Trump have noted that they would likely maintain the Research & Development related tax credits. Table 16: Top 25 US corporate tax breaks (2016) 2016 Government tax expense Category/Industry ($mn) Deferral of income from controlled foreign corporations International affairs 102,100 Accelerated depreciation of machinery & equipment Commerce 28,570 Deferred taxes for financial firms on certain income earned overseas International affairs 15,320 Deduction for US production activities Commerce 12,080 Credit for increasing research activities General science, space, and technology 9,580 Exclusion of interest on public purpose State & local bonds General purpose fiscal assistance 8,400 Credit for low-income housing investments Housing 8,200 Expensing of research & experimentation expenditures General science, space, and technology 6,350 Deferral of gains from like-kind exchanges Commerce 5,720 Inventory property sales source rules exception International affairs 4,270 Graduated corporation income tax rate Commerce 3,300 Exemption of credit union income Financial institutions and insurance 2,310 Special ESOP rules Income security 1,910 Deductibility of charitable contributions, other than education & health Training, employment, and social services 1,720 Tax credit for orphan drug research Health 1,700 Exclusion & deferral of policyholder income earned on life insurance & annuity contracts Fi