Bipartisan, bicameral legislation has been introduced which would restore the intent of the Tax Cuts and Jobs Act and apply an appropriate, reasonable cost recovery period to investments in Qualified Improvement Property. The Restoring Investment in Improvements Act (S. 803, H.R. 1869) has received support from dozens of cosponsors on both sides of the aisle, and is pending approval.
Establishing a reasonable cost recovery period for Qualified Improvement Property (QIP) has long been a point of bipartisan agreement in Congress. While the Tax Cuts and Jobs Act intended to make permanent a 15-year payback period for these expenditures, an error in the bill instead forces businesses to recover these costs over 39 years (or, for certain real estate firms, 40 years versus the intended 20-year period). Congress should pass legislation that remedies this mistake and restores the original intent of the legislation.