[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3123 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 3123

    To amend the Internal Revenue Code of 1986 to provide a shorter 
 recovery period for the depreciation of certain restaurant buildings.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 29, 2005

 Mr. Pascrell introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to provide a shorter 
 recovery period for the depreciation of certain restaurant buildings.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Independent Restaurant Appreciation 
Act''.

SEC. 2. RECOVERY PERIOD FOR DEPRECIATION OF CERTAIN RESTAURANT 
              BUILDINGS.

    (a) 10-Year Recovery Period.--Subparagraph (D) of section 168(e)(3) 
of the Internal Revenue Code of 1986 (relating to 10-year property) is 
amended by striking ``and'' at the end of clause (i), by striking the 
period at the end of clause (ii) and inserting ``, and'', and by adding 
at the end the following new clause:
                            ``(iii) in the case of any non-franchise 
                        small business, any section 1250 property which 
                        is a retail restaurant facility.''.
    (b) Definitions.--Subsection (e) of section 168 of such Code is 
amended by adding at the end the following new paragraphs:
            ``(8) Non-franchise small business.--The term `non-
        franchise small business' means, with respect to any taxable 
        year, any corporation, partnership, or sole proprietorship 
        which--
                    ``(A) is not a party to any franchise (within the 
                meaning of section 1253(b)(1)) related to the 
                furnishing of prepared meals which is in effect at any 
                time during such year, and
                    ``(B) meets the gross receipts test of section 
                448(c) for the prior taxable year (or, in the case of a 
                sole proprietorship, which would meet such test if such 
                proprietorship were a corporation).
            ``(9) Retail restaurant facility.--The term `retail 
        restaurant facility' means any building if more than 50 percent 
        of the building's square footage is devoted to preparation of, 
        and seating for on-premises consumption of, prepared meals.''.
    (c) Alternative System.--The table contained in section 
168(g)(3)(B) of such Code is amended by inserting after the item 
relating to subparagraph (D)(ii) the following new item:

``(D)(iii)..................................................      15''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service, and improvements made, after 
December 31, 2005.
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