CHANTILLY, Va. — The Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA) supports Senate bill S. 576, the Business Property Revitalization Act of 2003, which proposes an amendment to the Internal Revenue Code of 1986 to provide a 10-year depreciation life for leasehold improvements to commercial facilities.

According to SMACNA, it continues to support the proposed shorter 10-year depreciable life, which the organization says would more closely align tenant depreciation expenses with ever-changing tenant demands and building use patterns. SMACNA also reports that the legislation is supported by its partners in the Mechanical-Electrical-Sheet Metal Alliance.

The alliance partners recently sent a letter to senators stating that the depreciation proposed in the legislation “is far more realistic than the current IRS depreciable life of 39 years for leasehold improvements.” The letter also stated that the legislation would lower building operation costs and improve indoor air quality.

Publication date: 04/28/2003