U.S. Senator Kay Hagan today announced legislation that would promote new construction and investments in property at restaurants, offices and other commercial properties across North Carolina. Hagan is an original cosponsor of this bipartisan bill that would increase access to capital by permanently extending the 15-year tax depreciation period for leasehold improvements, restaurant improvements and new construction and retail improvements.
"This legislation will help North Carolina businesses recover the cost of improvements they make to enhance and grow their companies," Hagan said. "It would also provide much-needed certainty that will allow business owners to plan for the future. I'm proud to be an original cosponsor of this bipartisan legislation that will boost North Carolina's economy at a crucial time for our state."
Current law sets the tax depreciation period at 39 years. Since 1996, Congress has temporarily extended the 15-year depreciation period. These temporary solutions have created uncertainty that's harmful to businesses in North Carolina as they plan future restorations and improvements.
"As a restaurant owner, I make frequent improvements to keep up with normal wear and tear," said Frank Scibelli, CEO of FS Food Group in Charlotte. "A 39-year schedule makes no sense in today's business environment and I'm pleased Senator Hagan is working to make this needed change."
This legislation will give companies the certainty they need to invest in their businesses and expand.These capital investments fuel economic activity and create jobs. 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.
In addition to construction jobs, as employers expand their stores and restaurants, they will also need to hire additional workers. This legislation will be particularly beneficial to North Carolina's $15 billion restaurant industry, which supports more than 400,000 jobs around the state.
Hagan joined seven RepublicanSenators and six Democratic Senators to introduce this legislation.