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Leasehold Depreciation Bills Introduced

On February 5, legislation in both the Senate and the House were introduced to make permanent the 15-year depreciation period for leasehold improvements. S. 394 was introduced by Sens. John Cornyn (R-Texas) and Bob Casey (D-Penn.), while H.R. 765 was introduced by Reps. Richard Neal (D-Mass.) and Mike Kelly (R-Penn.). Permanently shortening the depreciation schedule for qualified leasehold improvements to a sensible 15-year time period is one of BOMA International’s top legislative priorities. Late last year, Congress passed a one-year extension of the 15-year depreciation schedule that had expired at the end of 2013, retroactively extending it from January 1, 2014 to December 31, 2014. Absent further legislative action, the schedule will remain at 39 years. BOMA will continue to educate Congress on the need for the depreciation schedule to reflect more accurately the length of a typical lease and the realities of the marketplace.

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