JA Welcomes Permanent Extension of 15-Year Depreciation on Store Improvements

(IDEX Online News) – The US Congress has passed a permanent extension of the 15-year depreciation on store improvements. The extension, which is expected to be

signed into law by President Barack Obama before the Christmas holiday, has been welcomed by Jewelers of America (JA), which has been fighting for more than a decade to make the depreciation provision permanent.

The depreciation measure was part of a tax “extenders” package attached to sweeping tax extenders legislation. It enables retailers to continue to write-off improvements on stores over a period of 15 years, instead of the 39 years previously mandated.

“Jewelers of America welcomes the permanent extension of this important depreciation measure. It helps jewelers – whether they rent or own their retail space – to update their stores more often to stay competitive,” said Jewelers of America president and CEO David J. Bonaparte.

The organization said that in a challenging and competitive luxury retail environment, being able to keep stores updated and refurbished – thanks to speeded-up depreciation of store improvements – is a key component to success.

JA had worked originally to have the store improvements depreciation measure included in an economic stimulus package passed by Congress in the aftermath of 9/11. The association has since fought to extend and make the provision permanent.