NRF Supports Retail Bill
The National Retail Federation announced its support of H.R. 2936, a new piece of legislation introduced into the U.S. House of Representatives by Rep. Richard Neal (D–Mass.). If passed, the law would shorten the depreciation period for remodeling and improvements made to retail stores. H.R. 2936 is an expansion of a temporary tax provision enacted in 2004, which is set to expire at the end of the year. The proposed law would also erase the distinction between leased and owned stores. The bill would shorten the depreciation period from 39 years to 15 years and would apply to both leased and owned stores. Current law limits depreciation on improvements made to leased stores to 15 years, but for owned stores, improvements must be depreciated over 39 years. “Retailers must update their stores every five to seven years in order to compete,” said NRF Vice President and Tax Counsel Rachelle Bernstein in a statement released by the Washington, D.C.–based organization. “The Neal bill gives us a depreciation period that is more realistic and treats all retailers the same without discrimination.”
