[Congressional Record Volume 149, Number 136 (Tuesday, September 30, 2003)]
[Senate]
[Page S12194]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BUNNING:
  S. 1679. A bill to amend the Internal Revenue Code of 1986 to reduce 
the depreciation recovery period for roof systems; to the Committee on 
Finance.
  Mr. BUNNING. Mr. President, I rise today to introduce the Realistic 
Roofing Tax Treatment Act of 2003 which would amend the Internal 
Revenue Code to provide a more realistic depreciation schedule for 
commercial roofs.
  In 1981, Congress eliminated component depreciation and put into 
place a general depreciation period of 15 years for all building 
components. In 1993, the recovery period for nonresidential property 
was extended to 39 years in order to raise revenue. The current 39-year 
depreciation period is not a realistic measure of the average life span 
of a commercial roof. It is a disincentive for building owners to 
replace non-performing roofs, because replacing failing roofs more 
frequently than 39 years means carrying the burden of roofs that no 
longer exist on the books.
  A study by Ducker Worldwide, a leading industrial research firm, 
found the current aggregate commercial roof life span is 17.45 years. 
Ducker estimates that a shortened depreciation schedule will stimulate 
economic activity and generate 30,000 new jobs in a two-year period. I 
am particularly concerned that we help America's manufacturers and this 
legislation will provide them immediate tax relief. It will also 
provide relief to America's small businesses, which find it more 
difficult to absorb the impact of capital improvement expenditures than 
larger entities.
  Congressman Foley will shortly be introducing similar legislation in 
the House of Representatives. I am pleased that this proposal has the 
support of the United Union of Roofers, Waterproofers and Allied 
Workers, and I urge my colleagues to support this important piece of 
legislation when it comes before the Senate.
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