John Kerry: “along Main Street, in a countless number of towns, many small businesses are placed at a competitive disadvantage by our…”

“along Main Street, in a countless number of towns, many small businesses are placed at a competitive disadvantage by our tax laws. Business owners need to remodel their store every 5 to 7 years. Consumers' tastes and needs change, and to stay competitive, a store needs to reflect those changes. If a store is owned, the owner is required to depreciate the renovation costs over 39 years, but a store that has leased space in the strip-mall across town, depreciates renovation costs over a 15-year period. The result: a Main Street store owner pays twice as much to renovate as their counterpart who leases. Today, I am introducing legislation along with Senator Snowe that will even the playing field for businesses that own the real estate where their business is located. We want parity between the business owners who own and those who lease their property. The Treasury Department, the Congressional Research Service, and private economists have found that the depreciation life for renovations is far too long. These tax rules generate high tax costs, laying the burden on small town, rural retailers who are more likely to own their property than retailers in urban areas. It is time to address this inequity by reducing the 39-year tax depreciation period to 15 years. I urge my colleagues to support our Main Street stores through support of this legislation. ______ By Mr. ENZI (for himself and Mr. Kennedy): S. 3807.…”