- asset depreciation at a faster rate than the straight line method. Examples include the 200% or 150% declining balance methods.
- noun a system of depreciation which reduces the value of assets at a high rate in the early years to encourage companies to invest in new equipment, because of the tax advantages. This applied in the UK until 1984: companies could depreciate new equipment at 100 per cent in the first year. The system still applies in the USA where a 5-year tax depreciation can be applied (instead of the usual 20-years) to certain types of equipment.