The Retail Industry Leaders Association (RILA) praised the House introduction of bipartisan legislation that would fix a drafting error associated with the 15-year qualified improvement property (QIP) provision enacted as part of the sweeping tax overhaul legislation enacted in 2017. As a result of the error, QIP must be depreciated over 39 years rather than 15 years as originally intended and is not eligible for immediate expensing as contemplated under the law. This is a companion piece to bipartisan Senate legislation introduced earlier this month.
“RILA is thankful for Representatives Panetta and Walorski’s leadership in introducing bipartisan legislation that would update QIP. Since the passage of comprehensive tax reform, retailers have followed through on their promise to invest in their workforce and their businesses. The drafting error in this provision has stifled growth and innovation across the industry. With bills now introduced in the House and Senate, we are hopeful that Congress will support retailers’ efforts as they continue to make improvements to stores, grow their workforce and enhance the overall customer experience,” says Jennifer Safavian, EVP of government affairs for RILA.