WASHINGTON, D.C. — The National Restaurant Association has hailed the U.S. Senate passage of the Tax Extenders and Alternative Minimum Tax Act of 2008, which includes 15-year depreciation schedules for new restaurant construction and improvements.
"We are pleased that the Senate approved this important legislation, which includes provisions to speed up tax depreciation schedules for restaurant buildings," said John Gay, senior vice president of government affairs and public policy for the Association. "The current 39 1/2-year depreciation schedule puts restaurants at competitive disadvantage. Businesses such as convenience stores and amusement-park food stores enjoy far shorter depreciation schedules, enabling these non-restaurant operations to more easily expand and improve their foodservice options."
The NRA also supports several other provisions in the bill, including:
- the alternative minimum tax (AMT) patch
- extension of the work opportunity tax credit (WOTC) for Hurricane Katrina employees
- extension of the charitable deduction for food inventory'
- disaster relief for the Midwest
- compromise mental health parity language
"We strongly urge members of the U.S. House of Representatives to support this important bill," Gay said.
If approved by the U.S. House, the bill will allow 15-year depreciation (compared to current law's 39.5 years) for restaurant improvements made in 2008 and 2009, as well as for new restaurant construction in 2009.
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