The Pennsylvania Food Merchants Association has signed on to a letter drafted by the National Grocers Association that urges federal lawmakers to fix a harmful glitch that affects all types of retailers, not only supermarkets.
Bipartisan legislation, H.R. 1869 and S.R. 803, was introduced in April to solve this problem, which stems from the Tax Cuts and Jobs Act of 2017. The Act included a provision that intended to provide retailers with the benefit of full and immediate expensing for qualified improvement property (QIP), or interior remodels to stores. However, due to a drafting error in the new tax law, retailers are not eligible to receive this benefit, and the interior remodels depreciate over 39 years.
The mistake increases retailers’ tax burden and leaves them worse off than before the new tax law as far as expensing improvement property.
The push is supported by a major coalition of trade groups that include not only NGA but the International Council of Shopping Centers, National Retail Federation, Food Marketing Institute, and Associated General Contractors.
The support by Main Street retailers will hopefully show Congress that the mistake needs to be fixed because it is causing significant harm to constituents in every state and Congressional District.
Bipartisan legislation, H.R. 1869 and S.R. 803, was introduced in April to solve this problem, which stems from the Tax Cuts and Jobs Act of 2017. The Act included a provision that intended to provide retailers with the benefit of full and immediate expensing for qualified improvement property (QIP), or interior remodels to stores. However, due to a drafting error in the new tax law, retailers are not eligible to receive this benefit, and the interior remodels depreciate over 39 years.
The mistake increases retailers’ tax burden and leaves them worse off than before the new tax law as far as expensing improvement property.
The push is supported by a major coalition of trade groups that include not only NGA but the International Council of Shopping Centers, National Retail Federation, Food Marketing Institute, and Associated General Contractors.
The support by Main Street retailers will hopefully show Congress that the mistake needs to be fixed because it is causing significant harm to constituents in every state and Congressional District.
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