The National Restaurant Association today applauded Senators Bob Casey (D-Pa.) and John Cornyn (R-Texas) for introducing legislation (S. 749) to make permanent a 15-year tax depreciation schedule for restaurant improvements and new construction, leasehold improvements and retail improvements.
the bipartisan bill, restaurateurs, their landlords and other
commercial-property owners could write off the cost of improvements to
property, as well as the cost of new construction for restaurants, over 15
years, which is more in line with marketplace reality rather than 39 years. The
current 15-year schedule for these investments is set to expire at the end of
experience heavy wear and tear serving 130 million guests a day at nearly one
million establishments nationwide,” said Scott DeFife, Executive Vice
President, Policy and Government Affairs, National Restaurant Association.
“Making the 15-year depreciation provisions permanent provides restaurant
operators with the predictability needed to plan for future investments, and we
commend Senators Casey and Cornyn for their
leadership on this critical issue for our industry.”
Restaurant Association research shows that restaurants undergo significant
renovations every six to eight years, on average.
DeFife added that the measure
would help create jobs beyond the restaurant industry, as construction spending
has a significant ripple effect throughout the rest of the economy. The
industry spent $6.1 billion on new construction in 2011, adding approximately
172,000 jobs to the economy.
quicker depreciation schedules would apply to new restaurant construction as
well as investments in property such as interior walls, wiring, partitions,
plumbing, and energy-efficient heating and cooling systems in restaurants,
offices and other commercial space.
National Restaurant Association is a leader of the Depreciation Fairness
Coalition, a group of restaurants, trade associations, and other organizations
that support permanent extension of the 15-year depreciation schedule for
restaurant improvements and new construction, leasehold improvements, and
The following Senators are
original cosponsors of the legislation: Debbie Stabenow (D-Mich.), Mike Crapo
(R-Idaho), Bob Menendez (D-N.J.), James Risch
(R-Idaho), Jim Inhofe (R-Okla.), Sherrod Brown (D-Ohio), Mark Begich (D-Alaska), Susan Collins (R-Maine), Kay Hagan
(D-N.C.), Amy Klobuchar (D-Minn.), David Vitter
(R-La.), and Roger Wicker (R-Miss).