For Immediate Release: March 27, 2019
Contact: Jonathan Paine, (202) 367-1169
NLBMDA Praises Introduction of
Restoring Investments in Improvements Act
Fixes Tax Law Error that Discourages Business Investment
. – The National Lumber and Building Material Dealers Association (NLBMDA) praises action taken yesterday by Reps. Jimmy Panetta (D-CA) and Jackie Walorski (R-IN) to introduce the Restoring Investments in Improvements Act (H.R. 1869, S. 803), which would fix a drafting error in the Tax Cuts and Jobs Act, and make interior improvements to retail stores eligible for accelerated bonus depreciation.
Congress intended for remodeling and other store improvements to be eligible for accelerated bonus depreciation and a 15-year recovery period. Investments in qualified assets are eligible under the new tax law for 100 percent bonus depreciation through 2022.
However, a technical error in the tax reform law mistakenly excludes many interior improvements to retail businesses and restaurants from accelerated bonus depreciation and requires them to be written off over 39 years.
This means affected businesses
are only able to write off 2.5
percent in the first year
and then depreciate the remainder over the next
The legislation corrects the drafting error allowing interior improvements to retail stores and restaurants to be eligible for accelerated bonus depreciation and a 15-year recovery period. An identical bill was introduced in the Senate by Sens. Pat Toomey (R-PA) and Doug Jones (D-AL) earlier this month.
“NLBMDA is pleased to see momentum building in Congress to address the unfair tax treatment of interior improvements that is discouraging business investment,” said Jonathan Paine, NLBMDA President & CEO. “Congressional action is needed to unlock the full benefits of tax reform for lumber dealers.”
The National Lumber and Building Material Dealers Association (NLBMDA) represents its members in the national public policy arena, with emphasis on efforts to 1) promote the industry and educate legislators and public policy personnel; and 2) assist legislative, regulatory, standard-setting and other government or private bodies in the development of laws, regulations and policies affecting lumber and building material dealers, its customers and suppliers. Founded in 1917, the association has over 6,000 members operating single or multiple lumber yards and component plants serving homebuilders, subcontractors, general contractors, and consumers in the new construction, repair and remodeling of residential and light commercial