Diverse Chambers Send Letter to Hill Leaders calling for Fix to the QIP Glitch

November 25, 2019


Dear Speaker Pelosi, Leader McCarthy, Chairman Neal, and Ranking Member Brady,

We collectively represent small, diverse businesses across the U.S. and are writing in support of the bipartisan Restoring Investment In Improvements Act (H.R.1869/S.803) supported by 280 House (148D-132R) and 57 Senate (44R-12D-1I) Members. This bipartisan legislation has no impact on the federal budget.

Issue Background

Prior to 2015, commercial interior improvement projects were subject to a 39-year depreciation schedule. The PATH Act of 2015 made permanent a 15-year depreciation schedule for three special classes of property.

The Tax Cuts and Jobs Act (TCJA) of 2017 consolidated three special classes of property into one called Qualified Improvement Property (QIP) with the intent of providing QIP with a 15-year depreciation schedule and, while in effect, 100% bonus depreciation.

Due to a drafting error in the statutory language, QIP was not assigned a 15-year recovery period, making it subject to a 39-year depreciation and ineligible for 100% bonus depreciation.

The Joint Explanatory Statement accompanying the TCJA describes the intent of Congress to provide QIP with a 15-year recovery period.

The Joint Committee on Taxation included the cost of a 15-year QIP recovery period in the original scoring of the TCJA. Thus, legislation retroactively restoring 15-year QIP depreciation consistent with Congressional intent will have no impact on the federal budget.


The restoration of the 15-year QIP depreciation is of paramount importance for the thousands of small businesses across the country. Small businesses are the economic engine that provides jobs for the majority of America’s workforce.

The QIP drafting error is a major blow to the financial health of these small businesses, employees in whom they invest and communities which they support.

Further delay in fixing this error will increase its negative impact, decrease economic activity, and threaten job creation.


Chiling Tong   

President and CEO

Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship

Justin G. Nelson     

Co-Founder & President

National LGBT Chamber of Commerce

Ron Busby, Sr.

President and CEO

U.S. Black Chambers, Inc.

Ramiro Cavazos

President and CEO

U.S. Hispanic Chamber of Commerce