The aim of this paper was to evaluate the effect of tax incentive for domestic private investment over the period 1982 to 2017. The study adopts quantitative method and descriptive design of research respectively. To this end, secondary data have been collected from pertinent government authorities and World Bank. Descriptive statistical analysis has been used to analyze the trends of domestic investment, tax revenue and tax incentive of Ethiopia. | The effect of tax incentive on domestic investment in ethiopia: Ardl approach