An issue dubbed as the “retail glitch” has been put back in the spotlight this month. The glitch resulted from a drafting error in the Tax Cuts and Jobs Act that caused the tax burden on a category of business investment called Qualified Improvement Property (QIP) to be increased. Because of this error, interior improvements to stores such as ceiling tiles, refrigeration units, electrical wiring, and shelving depreciate over 39 years instead of immediately. Clearly, this is creating uncertainty for independent grocers across the country. Check out this video for a refresher about this issue and its impact on the independent supermarket industry.
Since this issue came to light over a year ago, NGA has been diligently working with Congress on behalf of our members to come up with a solution. Fortunately, this month, Senators Pat Toomey (R-PA) and Doug Jones (D-AL) and Representatives Jimmy Panetta (D-CA_20) and Jackie Walorski (R-IN) introduced the “Restoring Investments in Improvements Act,” which aims to resolve the “retail glitch” and ensure that Main Street grocers are eligible for the full benefits of tax reform.
NGA supports this legislation and encourages independent grocers to do the same by TAKING ACTION today and telling your Member of Congress to fix the glitch. If you have any questions about the retail glitch, please contact me, Molly Pfaffenroth, Director of Government Relations at email@example.com