Two important and bi-partisan tax extender bills have been introduced in the House of Representatives that would make permanent certain tax incentives
1. H.R. 5264, which will renew and make permanent the Work Opportunity Tax Credit (WOTC), and;
2. H.R. 4212, which will make permanent the 15-year depreciation schedule for restaurant improvements and new construction
Restaurants, as an industry, are the nation’s second-largest private-sector employer. Our industry is known for giving opportunities to low-skilled and unskilled workers to gain valuable experience, earn a living, and improve their situation. The Work Opportunity Tax Credit is one tool that allows us to make those opportunities possible for disabled veterans, individuals receiving certain types of public assistance, people with disabilities, and other groups that are historically difficult to employ. With its tax credits of $2,400 to $5,600 per worker, the WOTC helps open doors for those who might otherwise have no option but to collect public assistance. This means the WOTC, in addition to opportunities, helps create savings for both business owners and federal, state and local governments. H.R. 5264 will keep those opportunities alive.
Like other high-customer volume businesses, restaurants must constantly make improvements to keep up with structural and cosmetic wear and tear caused by customers and employees. As an example, the restaurant industry alone has more than 130 million customers patronize restaurants each day. Unfortunately, the 15-year depreciation schedule for these properties expired at the end of 2013, and a 39-year schedule is now used. Even when it was in effect, the 15-year depreciation schedule was only temporary and had to be frequently renewed, a process that creates economic uncertainty for businesses. H.R. 4212 will provide certainty by ending the need for renewal, encourage restaurant owners to re-invest in their business, and help drive economic growth through additional construction.
Across the country, the restaurant industry is creating jobs for millions of Americans, whether it's their first job or life-long career. These pieces of legislation will help restaurateurs nationwide continue to provide opportunity and pathways to success for individuals of all backgrounds and skill levels looking to enter the foodservice industry.