House approves bill to help retailers with remodeling costs

New York - The House has passed a long-delayed tax bill that will help retailers remodel their stores and also move a wide range of individuals including welfare recipients and veterans into the workforce. The Tax Increase Prevention Act of 2014 now heads to the Senate.



The package includes two key provisions on depreciation that affect retailers who remodel their stores and another that helps with hiring.



The first depreciation provision would allow retailers to continue writing off the cost of remodeling and other improvements over 15 years rather than reverting to 39 years. The second, called “bonus depreciation,” would allow half the cost to be written off immediately, but would apply only to stores that are leased.



The depreciation provisions are important because they make remodeling more affordable, said David French, senior VP for government relations, NRF. In turn, the work creates tens of thousands of construction jobs each year.



The legislation would also renew the Work Opportunity Tax Credit, which provides credits of $2,400 or more per worker to help retailers hire veterans, welfare recipients and a variety of other economically or physically disadvantaged individuals who experience employment problems in the labor market. French said WOTC is “an important hiring incentive for retailers and helps to fund additional training for workers who might otherwise be less employable.”