McSally Leads on Small Business Solution
TUCSON – Yesterday, U.S. Representative Martha McSally led a letter to Paul Ryan, the Speaker of the House, and Kevin Brady, Chairman of the Ways and Means Committee, urging them to bring legislation to the House floor to fix the “retail glitch” ensuring that restaurants and retailers can take full advantage of the expensing provisions within the Tax Cut and Jobs Act (TCJA). Due to a technical drafting error, businesses that make qualified improvement property (QIP) investments in the interior of their facilities cannot write off the cost of the improvements in the year they are made, but instead revert to a 39 year cost recovery period. The TCJA clearly intended to improve the cost recovery treatment for QIP investments as it does other types of investment, but the technical error made their treatment worse than they were prior to TCJA’s passage.
“Restaurants and retailers are some of the most visible and valued businesses in our communities and it is essential that we correct this technical error and extend to them the same treatment as other types of investment,” said Congresswoman McSally. “While they wait for Congress to correct this error, these businesses are delaying or forgoing renovations, halting plans to revitalize declining malls, and placing safety improvements on hold. Not only does this hurt restaurants and retailers, but it hurts the businesses involved in the planning renovations, and ultimately our communities. We must act swiftly to correct this glitch.”
Click HERE to read Representative McSally’s full letter.