U.S. Rep. Troy Balderson (R-OH) on March 20 joined more than two dozen colleagues in urging congressional leaders to include a tax fix in the third coronavirus relief package that would support small businesses in recovering from the impact of the coronavirus pandemic.
“As we rightfully practice social distancing to protect our communities and loved ones, Ohio’s small businesses are hurting,” Rep. Balderson said. “As Congress works to deliver meaningful relief, this legislation will add yet another tool in small businesses’ toolbox to reinvest, rehire and recover from this crisis.”
Rep. Balderson and his fellow lawmakers requested that U.S. House leadership consider helping businesses invest in Qualified Improvement Property (QIP), which includes interior upgrades, certain energy efficiency equipment and accessibility improvements, according to a March 20 letter signed by the representatives.
“Due to a drafting error in the Tax Cuts and Jobs Act, QIP were rendered ineligible for full bonus depreciation because they were moved from a 15-year depreciation period to a 39.5-year period,” according to their letter. “This restrictive cost recovery treatment makes QIP more expensive and discourages businesses from investing in needed improvements.”
At the same time, Rep. Balderson is among a bipartisan group of 306 members of Congress who support the Restoring Investment in Improvements Act, H.R. 1869, which would correct this error and make QIP eligible for full bonus depreciation, according to their letter.
However, since its March 2019 introduction, H.R. 1869 has languished under consideration in the U.S. House Ways and Means Committee.
The U.S. Senate also has included a QIP fix in its proposed coronavirus relief package, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, S. 3548, the members wrote.
“As you consider policy responses to the current crisis,” wrote Rep. Balderson and his colleagues, “we ask that you address this lingering issue that has already harmed so many businesses and their workers.”
John Barker, president and CEO of the Ohio Restaurant Association, and Rich Hobbs, executive vice president of the Associated General Contractors of Ohio, also voiced support for congressional action to retroactively fix the tax error.