• The Food Marketing Institute (FMI) and National Grocers Association (NGA) have registered their approval of a just-introduced bill, the “Restoring Investment in Improvements Act,” described as “a bipartisan bill that will resolve the ‘retail glitch,’ a drafting error in the Tax Cuts and Jobs Act (TCJA).”
The TCJA “included a provision providing businesses with a 100 percent bonus depreciation to be used to write off the full costs of short-lived investments immediately. Congress intended to help retailers invest in their businesses with the inclusion of this provision. However, due to a drafting error, some categories of business investment, most notably qualified improvement property, or ‘QIP,’ were excluded from being 100 percent eligible for bonus depreciation. Due to this error, retailers making investments to improve their stores now face a more restrictive cost recovery period that is twice than under the prior law.”
The new legislation that fixes the drafting error was introduced by Rep. Jimmy Panetta (D-California) and Rep. Jackie Walorski (R-Indiana).
The TCJA “included a provision providing businesses with a 100 percent bonus depreciation to be used to write off the full costs of short-lived investments immediately. Congress intended to help retailers invest in their businesses with the inclusion of this provision. However, due to a drafting error, some categories of business investment, most notably qualified improvement property, or ‘QIP,’ were excluded from being 100 percent eligible for bonus depreciation. Due to this error, retailers making investments to improve their stores now face a more restrictive cost recovery period that is twice than under the prior law.”
The new legislation that fixes the drafting error was introduced by Rep. Jimmy Panetta (D-California) and Rep. Jackie Walorski (R-Indiana).
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