[Congressional Record (Bound Edition), Volume 145 (1999), Part 13]
[Senate]
[Page 18599]
[From the U.S. Government Publishing Office, www.gpo.gov]



                      TAXPAYER REFUND ACT OF 1999

                                 ______
                                 

                       DORGAN AMENDMENT NO. 1491

  (Ordered to lie on the table.)
  Mr. DORGAN submitted an amendment intended to be proposed by him to 
the bill, S. 1429, supra; as follows:

       At the appropriate place, insert the following:

     SEC. __SENSE OF CONGRESS REGARDING THE NEED TO ENCOURAGE 
                   IMPROVEMENTS IN MAIN STREET BUSINESSES BY 
                   EXPANDING EXISTING SMALL BUSINESS TAX EXPENSING 
                   RULES TO INCLUDE INVESTMENTS IN BUILDINGS AND 
                   OTHER DEPRECIABLE REAL PROPERTY.

       (a) Findings.--Congress finds that--
       (1) under current tax law, small businesses can immediately 
     deduct, that is, ``expense'', up to $19,000 in purchases of 
     equipment and similar assets;
       (2) there is bipartisan support for increasing the amount 
     of this expensing provision because it helps many small 
     businesses make the investments in equipment and machinery 
     they need by allowing them to immediately write off the costs 
     of such investments and bolstering their cash flow;
       (3) this expensing provision, however, is not as helpful as 
     it could be for some small businesses because it does not 
     cover their investments in improving the storefront or the 
     buildings in which they conduct their business;
       (4) in many small towns, the local drug store, shoe store, 
     or grocery store doesn't have much need for new equipment, 
     but it does need to improve the storefront or the interior;
       (5) although such investments are good for Main Streets 
     across this Nation, our current tax law creates a 
     disincentive to make them by requiring a small business owner 
     to depreciate the costs of the building improvements over 39 
     years for tax purposes;
       (6) legislation to expand the current expensing provision 
     to cover investments in depreciable real property was 
     recently introduced in the Senate with broad bipartisan 
     cosponsorship, including the leaders of the Republican and 
     Democratic parties;
       (7) this proposal is also strongly supported by small 
     business-oriented trade groups, including the National 
     Federation of Independent Business, the Small Business 
     Legislative Council, and the National Association of 
     Realtors;
       (8) the Department of the Treasury is currently conducting 
     a comprehensive study of all depreciation provisions in our 
     tax laws; and
       (9) Congress should consider expanding the existing 
     expensing provision to cover investments in storefront 
     improvements and other depreciable real property in any 
     reform legislation that results from this study or, if 
     possible, in any earlier legislation.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) many small businesses trying to improve their 
     storefronts on Main Street or investing to upgrade their 
     property would benefit if Congress expanded the existing 
     expensing provision to cover investments in depreciable real 
     property; and
       (2) Congress should consider including this proposal in any 
     future tax legislation.




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