CHANTILLY, VA — The Mechanical Electrical Sheet Metal Alliance has expressed support for S. 1087, legislation that would amend the Internal Revenue Code to reduce the depreciation for leasehold improvements from 39 years to 10 years.

The alliance believes this reduction would be a better way to serve tenants, owners, and building occupants, as well as to promote historic building preservation and energy efficiency. It also believes that reduction in the leasehold cost recovery period to 10 years would quickly generate greater investment in high-efficiency energy systems for facility lighting, heating, and air conditioning.

The legislation was introduced by Sen. Kent Conrad (D-ND) and has been sponsored by a bipartisan group of 12 senators. The Mechanical Electrical Sheet Metal Alliance is comprised of the Mechanical Contractors Association of America (MCAA), the National Electrical Manufacturers Association (NEMA), and the Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA).

Publication date: 07/30/2001