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The Economic Recovery Tax Act of 1981 (ERTA), or Kemp–Roth Tax Cut, was an Act that introduced a major tax cut, which was designed to encourage economic growth. The Act was enacted by the 97th Congress and signed into law by U.S. President Ronald Reagan. The Accelerated Cost Recovery System (ACRS) was a major component of the Act, and was amended in 1986 to become the Modified Accelerated Cost Recovery System (MACRS).
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