Legislation backed by SMACNA
CHANTILLY, Va. - SMACNA is urging senators to co-sponsor legislation that would permanently extend a 15-year depreciation life for leasehold improvements to commercial facilities, including energy-efficiency retrofit projects.
According to the Sheet Metal and Air Conditioning Contractors' National Association, the productive benefit of maintaining the leasehold cost-recovery period at 15 years would be a great investment in high-efficiency energy systems.
Prior to passage of the amendment as part of the 2004 corporate tax bill, owners had to wait 39 years to depreciate the cost of improvements made each time a lease tenant was found. Enacting the bill into law would prevent the leasehold depreciation schedule from reverting to the 39-year depreciation period Jan. 1, when current law expires.
SMACNA says that it has long supported a steep reduction in depreciation for leasehold improvements as a way to better serve tenants, owners and building occupants.