QIP

Dear Fellow Owners,

QIP (qualified improvement property) was omitted from the 2017 Federal Tax Reform bill. This means that our leasehold improvements are no longer eligible for bonus depreciation and are written off over 39 ½ years, rather than 15 years. This is a major blow to our tax deferral and cash flow planning options and is not representative of the life of the leasehold improvements that we place in service. It’s also a grave injustice to the small business owner who relied on this tax option when making capital investment decisions. 

Your government relations team is working hard to fix this problem. We need your help. We all need to reach out to whomever we know in Congress, the White House, or trade associations in Washington. We need to leverage the power of our system to get this issue fixed. We have a small window (assuming a budget gets passed) in September to get this done. If we miss this window, we are unlikely to see action before next year’s election. More details on an upcoming webcast will be included into the field brief tomorrow.

Your NOA Board.  

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