Congress has allowed the tax depreciation period on 39 year property to use a 15 year tax depreciation period since 1996. A couple of senators have recently introduced a bill to make this temporary extension permanent. This would promote investments and new construction at restaurants and other commercial properties.
In addition to investment, extending this tax break could create new jobs in construction and at commercial properties. Employers will need additional workers as they expand their restaurants, stores and offices.
In an article from Star News, author Kevin Maurer talks about the efforts of U.S. Sen. Kay Hagan of North Carolina:
Essentially, business owners can recoup the cost of improvements made to their business. The proposed measure would help the state’s $15 billion restaurant industry and its 400,000 jobs, she said. The improvements will also provide needed jobs and dollars to the construction industry.
“It would also provide much-needed certainty that will allow business owners to plan for the future,” Hagan said.
According to Hagan’s release, Congress has temporarily extended the 15-year depreciation period since 1996. The current tax depreciation period is 39 years.
“As a restaurant owner, I make frequent improvements to keep up with normal wear and tear,” said Frank Scibelli, CEO of FS Food Group in Charlotte in a statement. “A 39-year schedule makes no sense in today’s business environment and I’m pleased Senator Hagan is working to make this needed change.”
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