The Accelerated Cost Recovery System (ACRS) is a method of depreciation that allows businesses to deduct the cost of assets faster in the early years of use.

It was introduced in the United States under the Economic Recovery Tax Act of 1981.

Under ACRS:

Larger depreciation is claimed in the first few years

Smaller depreciation is claimed in later years

It reduces taxable income in the early years

ACRS was later replaced by the Modified Accelerated Cost Recovery System (MACRS).

In simple terms, ACRS is a depreciation method that lets businesses recover asset costs more quickly for tax purposes.