Today the Retail Industry Leaders Association (RILA), the trade association for America's largest and most innovative brands, praised the House introduction of bipartisan legislation that would fix a drafting error associated with the 15 year qualified improvement property (QIP) provision enacted as part of the sweeping tax overhaul legislation enacted in 2017. As a result of the error, QIP must be depreciated over 39 years rather than 15 years as originally intended and is not eligible for immediate expensing as contemplated under the law. This is a companion piece to bipartisan Senate legislation introduced earlier this month.
"RILA is thankful for Representatives Panetta and Walorski's leadership in introducing bipartisan legislation that would update QIP. Since the passage of comprehensive tax reform, retailers have followed through on their promise to invest in their workforce and their businesses. The drafting error in this provision has stifled growth and innovation across the industry. With bills now introduced in the House and Senate, we are hopeful that Congress will support retailers' efforts as they continue to make improvements to stores, grow their workforce and enhance the overall customer experience," said Jennifer Safavian, executive vice president of government affairs for RILA.
RILA is the US trade association for leading retailers. We convene decision-makers, advocate for the industry, and promote operational excellence and innovation. Our aim is to reimagine and transform the retail ecosystem - and equip leading retailers to succeed in it.
RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs, and more than 100,000 stores, manufacturing facilities, and distribution centers domestically and abroad.