accelerated cost recovery system (ACRS)

Provision in the US tax law that allows for accelerated depreciation. Under its provisions, assets or properties are divided into several classes, and a prescribed method of depreciation is assigned to each class. ACRS rules are meant to encourage capital investment and (with certain exceptions) provide for a rate of depreciation that is faster than the rate under straight line depreciation method. Its revised version is called modified accelerated cost recovery system (MACRS).