Skip navigation

New bill would accelerate restaurant depreciation

WASHINGTON A bipartisan bill introduced into the U.S. House of Representatives on Thursday could bring some tax relief to many restaurants by reducing the depreciation schedule for new construction or improvements to existing structures.

Sponsored by Reps. Kendrick Meek, D-Fla., and Pat Tiberi, R-Ohio, the bipartisan bill seeks to permanently reduce the current 39½-year depreciation schedule to 15 years. Congress earlier had passed a temporary 15-year schedule for restaurant depreciation, but that expired in 2005.

The restaurant industry has been lobbying lawmakers on Capitol Hill to make the measure permanent, and the National Restaurant Association was quick to praise the bill.

"By allowing restaurateurs to deduct the cost of new constructions and renovations on a shorter schedule, this legislation will help restaurateurs grow their businesses and create new jobs," said Peter Kilgore, acting chief executive of the association. "We applaud Reps. Meek and Tiberi for their leadership on this top priority industry issue."

Meek said: "In order to compete, restaurants need to upgrade their facilities often. It makes no sense to force them to use a 39½-year depreciation schedule when they need to improve their property more often to stay in business and serve their customers."

Congress previously had made exceptions by speeding up depreciation for some businesses that experience heavy daily wear and tear, like convenience stores and gas stations.

"This measure will level the playing field among restaurants, convenience stores and gas stations, while it simplifies and equalizes the tax code," Tiberi said.

The bill has been referred to the House Ways and Means Committee.

TAGS: News
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish