The Depreciation Fairness Coalition, led by the National Restaurant Association, has sent a letter to each member of the U.S. Congress urging an extension of the 15-year depreciation schedule for restaurant improvements and new construction, leasehold improvements and retail improvements that is set to expire at the end of 2009. The Coalition says that a seamless extension is essential to provide businesses with the certainty they need to undertake capital expenditures, which are critical to fueling economic activity and creating jobs.
"Without Congressional action, the depreciation schedule will revert back to 39 years, which would greatly discourage capital expenditures for restaurants," said Beth Johnson, Executive Vice President of Public Affairs for the National Restaurant Association. "The failure to act now would be extremely shortsighted and inhibit job creation at a key moment. As the economy begins the process of recovery, businesses need the resources necessary to make investments, hire and retain workers, and, in certain cases, keep their doors open."
According to a National Restaurant Association survey, 42 percent of restaurant operators are considering making a capital expenditure for equipment, expansion, or remodeling in the next six months.
The letter states that extending the depreciation schedule is an important driver of economic activity and job creation. According to the Bureau of Economic Analysis, every dollar spent in the construction industry generates an additional $2.39 in spending in the rest of the economy and every $1 million spent in the construction industry creates more than 28 jobs in the overall economy.
The Depreciation Fairness Coalition is a group of restaurants, trade associations, and other organizations that support permanent extension of the 15-year depreciation schedule for restaurant improvements and new construction, leasehold improvements, and retail improvements.