The legislation is critical to jewelers
(NEW YORK) – Jewelers of America (JA), the national trade association for businesses serving the fine jewelry marketplace, welcomes the permanent extension of the 15-year depreciation on store improvements, which was passed by Congress on December 18 and is expected to be signed into law by President Barack Obama.
The important depreciation measure was part of a tax “extenders” package attached to sweeping tax extenders legislation. It marks a major victory for Jewelers of America, as the association has been fighting for more than a decade to make the depreciation provision permanent.
“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,” says Jewelers of America President and CEO David J. Bonaparte.
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. The measure enables retailers to continue to write-off improvements on stores over a period of 15 years, instead of the 39 years that previously had been mandated.
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.
The association’s political action committee, JAPAC, has also focused its support on legislators who work on legislation of vital interest to retailers, such as depreciation for store improvements. The issue was a key point of discussion with lawmakers during JAPAC’s annual fly-in to Washington, D.C., held in June. “JAPAC has enabled jewelers to have a voice in government on the issues that are critical to jewelers’ bottom lines,” says Bonaparte.
For more information on JAPAC and other legislative issues Jewelers of America is currently following, visit the Advocacy section of JA’s website at http://www.jewelers.org/ja/advocacy.