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S. 803 (116th): Restoring Investment in Improvements Act


The text of the bill below is as of Mar 14, 2019 (Introduced). The bill was not enacted into law.

Summary of this bill

An accidental mistake in 2017’s tax reform prevented this from occurring as intended, but now it might happen in 2020.

Context

Republicans’ tax reform law, the Tax Cuts and Jobs Act of 2017, permitted most businesses to write off facility improvement costs from their taxes immediately. This marked a change from prior law requiring them to write off such expenses over the course of 15 years.

However, the law inadvertently read that “nonresidential real property” would have a tax writeoff period of 39 years. This includes small local stores, businesses, and restaurants.

What the legislation does

The Restoring Investment in Improvements Act would allow such business to deduct the ...


II

116th CONGRESS

1st Session

S. 803

IN THE SENATE OF THE UNITED STATES

March 14, 2019

(for himself, Mr. Jones, Mr. King, Mr. Manchin, Mr. Portman, Mr. Roberts, Mrs. Shaheen, Mr. Thune, Ms. Sinema, and Ms. McSally) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to restore incentives for investments in qualified improvement property.

1.

Short title

This Act may be cited as the Restoring Investment in Improvements Act.

2.

Technical amendments regarding qualified improvement property

(a)

In general

Section 168 of the Internal Revenue Code of 1986 is amended—

(1)

in subsection (e)—

(A)

in paragraph (3)(E), by striking and at the end of clause (v), by striking the period at the end of clause (vi) and inserting , and, and by adding at the end the following new clause:

(vii)

any qualified improvement property.

, and

(B)

in paragraph (6)(A), by inserting made by the taxpayer after any improvement, and

(2)

in the table contained in subsection (g)(3)(B)—

(A)

by striking the item relating to subparagraph (D)(v), and

(B)

by inserting after the item relating to subparagraph (E)(vi) the following new item:

(E)(vii)20

.

(b)

Effective date

The amendments made by this section shall take effect as if included in section 13204 of Public Law 115–97.