Our Mission

Learn who we are and how we serve our community

Leadership

Meet our leaders, trustees and team

ICSC Foundation

Support up-and-coming professionals

ICSC Exchange

Catch up on industry ideas, news and views

Research

Check out wide-ranging resources that educate and inspire

Global Public Policy

Learn about the governmental initiatives we support

Events

Connect with other professionals at a local, regional or national event

Professional Development

Grow your skills online, in a class or at an event with expert guidance

Find Members

Access our Member Directory and connect with colleagues

Find Outlets

Get data and contact information for shopping outlets

Talent HQ

Search and post jobs, upload your resume or find qualified candidates

Become a Member

Learn about how to join ICSC and the benefits of membership

Renew Membership

Stay connected with ICSC and continue to receive membership benefits

Global Public Policy

Groups urge Congress to ‘fix the retail glitch’

May 3, 2019

A group of about 800 retailers, grocers, restaurants and trade groups, including ICSC, sent a letter to congressional leaders on April 29 urging lawmakers to co-sponsor legislation that would fix an error in the 2017 tax-reform law that inadvertently lengthened the depreciation period for interior renovations.

Tax reform combined several separate categories of property improvements – leasehold, restaurant and retail — under a new definition called “qualified improvement property” (QIP). QIPs were intended to be depreciated over 15 years. Due to a drafting mistake, however, these improvements must be depreciated over 39 years instead, far longer than the economic life of these investments. 

The bipartisan Restoring Investment in Improvements Act (S. 803/H.R. 1869), introduced by Sen. Toomey (R-Pa.) and Rep. Panetta (D-Calif.), would fix this error — the “retail glitch” — and apply retroactively to any improvements made since passage of the tax-reform law. The bill has roughly 60 co-sponsors in the House and 22 in the Senate.

Because the error qualifies as a “technical correction,” the legislation does not need to be offset with revenue from other tax increases or spending reduction. Nonetheless, Congress has been slow to address the problem.

ICSC members will be urging Congress to fix QIP during our Strategic Leadership Summit, in June. 

Join us to help educate lawmakers about this important issue. You can find more information about SLS here.

Phillips Hinch

Vice President, Tax Policy