H.R. 765 would amend the Internal Revenue Code to permanently provide a 15-year recovery period for depreciating certain restaurant, retail improvement, and leasehold improvement property, effective for such property placed in service after December 31, 2014. Under current law that 15-year recovery period expired on December 31, 2014, causing qualified property placed in service after that date to be depreciated over 39 years.
The staff of the Joint Committee on Taxation (JCT) estimates that enacting H.R. 765 would reduce revenues, thus increasing federal budget deficits, by about $28.4 billion over the 2016-2025 period.
The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending and revenues. Enacting H.R. 765 would result in revenue losses in each year beginning in 2016.
JCT has determined that the bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.