Leasehold improvement recovery addressed. (Legislative Update).
Despite Congress' failure to agree on an economic stimulus package before their holiday recess last year, the House did pass a bill
in October concerning relief for leasehold improvement that contained a
permanent provision shortening the recovery period for these investments
to 15 from 39 years. The Senate Finance Committee had agreed to provide
a one-year 10 percent bonus depreciation, which during House-Senate
negotiations seemed to have been agreed to as a three-year provision
with a first-year bonus depreciation of 30 percent. The House passed a
second version of the stimulus package, which provided a permanent
provision reducing the recovery period to 15 from 39 years.