Leasehold Improvement Depreciation Act

The Leasehold Improvement Depreciation Act of 2007 was a proposed piece of United States legislation. The act would have amended the Internal Revenue Code of 1968 to extend a recovery period for the deprecation of leases.

Function

The act would have amended Section 168(e)(3)(E)(iv) of the 1968 Internal Revenue Code to permanently extend what had previously been a 15-year recovery period for depreciated value on leases. The depreciation was calculated to subtract from the owner's tax burden.

Time Frame

The original Internal Revenue Code statute only applied to leases put into service before Jan. 1, 2008. Additionally, this act would have taken effect in the subsequent taxable year of its passing.

History

The act was originally proposed in the Senate by Sen. Kent Conrad of North Dakota on May 10, 2007. The act was referred to the Senate Finance Committee but was never voted on.

References

• Gov Track: Leasehold Improvement Depreciation Act of 2007