The House and Senate finally came to an agreement late last week to extend the Social Security payroll tax cut, unemployment insurance benefits and avoid a 27.4% reimbursement cut to to physicians serving Medicare patients, but an extension of the 15-year restaurant depreciation schedule for new improvements/construction was not included in the last minute deal.
However, VGM Club Government Relations still see’s hope for the legislation. The restaurant depreciation extension is part of a larger tax extenders package that includes many popular tax provisions and leaders of both parties are discussing taking up the tax extenders package early next year. The restaurant community must continue to contact our members of congress to ensure they understand the importance of extending the 15-year restaurant improvement/construction depreciation schedule.
VGM Club President DJay Ellis recently contacted Senator Charles Grassley (R-IA), who is the ranking member on the Senate Finance Committee. DJay and Club Government Relations were able to get Senator Grassley to support the 15-year restaurant depreciation schedule extension, but in his capacity as ranking member on Senate Finance, he would only support the extension if it were part of the larger tax extenders package that has yet to be taken up by committee Democrats. Read DJay’s letter here
In order to show broad support for the 15-year restaurant depreciation schedule, our industry must continue to push for additional cosponsors of S. 687 and HR 1265. The more support we can gain for these individual pieces of legislation, the more momentum we have to push the full tax extenders bill through both houses of congress.
Learn more about the 15-year restaurant depreciation schedule here.
Club Government Relations will continue to monitor the status of the tax extenders package and provide Club members with needed updates. Contact us for help communicating with your elected officials on the extension of the 15-year restaurant construction/improvement depreciation schedule.