The Associated General Contractors (AGC) of America is urging Congress to pass bipartisan legislation to set a 15-year timeline for depreciating improvements to commercial properties. According to AGC, an error in the 2017 legislation set a timeline at 39 years, and forced many property owners to delay or reconsider planned improvements, putting future construction demand at risk.
Stephen E. Sandherr, chief executive officer of AGC, released the following statement in support of the new, bipartisan, Restoring Investment in Improvements Act:
"Many construction projects are being delayed or reconsidered because of a drafting error that set the wrong timeline for depreciating the cost of commercial property improvements. Fortunately, a bipartisan group of senators understands the very significant and real threat this error poses to future commercial projects and the overall health of our economy.
"Fixing the legislation and setting the right depreciation timeline for these kinds of essential improvements will boost demand for construction, support new projects, and give a well-timed boost to the economy. That is why the Associated General Contractors of America is urging Congress to enact this legislation as quickly as possible, so the President can sign it and our economy can continue to expand."