Joint Association Comments on Additional First Year
The undersigned companies and associations appreciate this opportunity to comment on the Internal Revenue Service’s (“IRS”) proposed regulations on Internal Revenue Code (“Code”) § 168(k), as amended by the Tax Cuts and Jobs Act, Pub. L. 115-97 (“H.R. 1”).1 We urge the IRS to utilize this rulemaking to issue interim guidance on the drafting errors in H.R. 1 pertaining to depreciation of qualified improvement property (“QIP”). Consistent with Congress’s intent and H.R. 1’s Joint Explanatory Statement on depreciation recovery periods (and relatedly, bonus depreciation eligibility) for QIP, such guidance should allow taxpayers – pending enactment of technical corrections legislation – to apply 15-year Modified Accelerated Cost Recovery System (“MACRS”) and 20-year Alternative Depreciation System (“ADS”) recovery periods for QIP.