Legislation that would permanently reduce the timeline for depreciating leasehold improvements to 15 years was recently introduced in the 112th Congress. In the House, the measure (H.R. 1265) is sponsored by two members of the Committee on Ways and Means, Reps. Jim Gerlach (R–Pa.) and Richard Neal (D–Mass.). In the Senate, a bill (S. 687) is sponsored by Senators Kent Conrad (D–N.D.) and John Cornyn (R–Texas).
BOMA continues to work with the Depreciation Fairness Coalition to obtain additional cosponsors for both bills. In today’s uncertain political and economic climate, it is necessary to demonstrate significant support for a permanent reduction to even be considered by congressional leaders. Absent congressional action before year’s end, the 15–year depreciation schedule that is currently in place will revert to 39 years on January 1, 2012.
Thank you to all the BOMA members who met with their U.S. senators and representatives on this important issue during the Local Edition of the National Issues Conference. We ask that you please take the time now to follow up with your legislators with a call, email or letter. Please visit the Legislative Action Center at www.boma.org for a sample letter that you can send automatically or copy into a personalized letter or email.