Congress to weigh new bill to accelerate depreciation

Nation's Restaurant News, Oct 1, 2007

WASHINGTON -- A bipartisan bill introduced in the U.S. House of Representatives Thursday could bring tax relief to many restaurants by reducing the depreciation schedule for new construction or improvements to existing structures.

Sponsored by Reps. Kendrick Meek, D-Fla., and Pat Tiberi, R-Ohio, the bill would permanently reduce the current 39-and-a-half-year depreciation schedule to 15 years.

Congress earlier had passed a temporary 15-year schedule for restaurant depreciation, but that expired in 2005. The restaurant industry has been lobbying lawmakers on Capitol Hill to make the measure permanent, and the National Restaurant Association was quick to praise the new bill.

"By allowing restaurateurs to deduct the cost of new constructions and renovations on a shorter schedule, this legislation will help restaurateurs grow their businesses and create new jobs," said Peter Kilgore, the NRA's acting chief executive.

Congress previously had made exceptions by speeding up depreciation for some businesses that experience heavy daily wear and tear, like convenience stores and gas stations.