Daily Tax Report ®

Bipartisan Senate Bill Would Fix Tax Law’s ‘Retail Glitch’

March 14, 2019, 2:09 PM

A bill from Sens. Pat Toomey (R-Pa.) and Doug Jones (D-Ala.) would ensure restaurants and retailers can take advantage of a tax overhaul provision allowing them to immediately write off the costs of facility improvements.

The measure is in response to the “retail glitch,” a drafting error in the 2017 tax law that assigned types of capital a longer cost recovery period, making them ineligible for the immediate write off under tax code Section 168(k). Building improvements, for example, have to be written off over a period as long as 39 years.

  • Resolving the...
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