[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 271 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 271

    To amend the Internal Revenue Code of 1986 to provide a shorter 
recovery period for the depreciation of certain improvements to retail 
                                 space.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 11, 2007

 Ms. Snowe (for herself, Mrs. Lincoln, Mrs. Hutchison, and Mr. Kerry) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to provide a shorter 
recovery period for the depreciation of certain improvements to retail 
                                 space.

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

SECTION 1. RECOVERY PERIOD FOR DEPRECIATION OF CERTAIN IMPROVEMENTS TO 
              RETAIL SPACE.

    (a) 15-Year Recovery Period.--Subparagraph (E) of section 168(e)(3) 
of the Internal Revenue Code of 1986 (relating to 15-year property) is 
amended by striking ``and'' at the end of clause (vii), by striking the 
period at the end of clause (viii) and inserting ``, and'', and by 
adding at the end the following new clause:
                            ``(ix) any qualified retail improvement 
                        property.''.
    (b) Qualified Retail Improvement Property.--Subsection (e) of 
section 168 of the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph:
            ``(8) Qualified retail improvement property.--
                    ``(A) In general.--The term `qualified retail 
                improvement property' means any improvement to an 
                interior portion of a building which is nonresidential 
                real property if--
                            ``(i) such portion is open to the general 
                        public and is used in the trade or business of 
                        selling tangible personal property or services 
                        to the general public; and
                            ``(ii) such improvement is placed in 
                        service more than 3 years after the date the 
                        building was first placed in service.
                    ``(B) Certain improvements not included.--Such term 
                shall not include any improvement for which the 
                expenditure is attributable to--
                            ``(i) the enlargement of the building,
                            ``(ii) any elevator or escalator, or
                            ``(iii) the internal structural framework 
                        of the building.''.
    (c) Requirement To Use Straight Line Method.--Paragraph (3) of 
section 168(b) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new subparagraph:
                    ``(I) Qualified retail improvement property 
                described in subsection (e)(8).''.
    (d) Alternative System.--The table contained in section 
168(g)(3)(B) of the Internal Revenue Code of 1986 is amended by 
inserting after the item relating to subparagraph (E)(viii) the 
following new item:


``(E)(ix)..................................................        39''.
 

    (e) Effective Date.--The amendments made by this section shall 
apply to qualified retail improvement property placed in service after 
the date of the enactment of this Act.
                                 <all>