Ways & Means Committee Approves Kelly Bill to Help Restaurants Create Jobs

WASHINGTON — U.S. Representative Mike Kelly (R-PA) – a member of the House Ways and Means Committee – issued the following statement after today’sfull committee mark-up hearing for H.R. 765, the Restaurant and Retail Jobs and Growth Act, which he introduced in the House of Representatives on February 5, 2015. The hearing featured the mark-up of seven pieces of tax and health care legislation.

“I applaud my colleagues on the Ways and Means Committee for supporting my bill to give thousands of our nation’s restaurants the tax certainty they need to invest, expand, and create more jobs for more of our fellow Americans. It’s time we make the 15-year depreciation schedule a permanent part of the nation’s tax code so that these main street businesses can better plan for the future. The ability to prepare for business expenditures – knowing what tax liabilities will be in subsequent years – is vital to making informed business decisions that result in economic growth. That’s what the Restaurant and Retail Jobs and Growth Act will do.”

The National Restaurant Association:

“The National Restaurant Association appreciates the House Ways and Means Committee’s willingness to markup legislation that will benefit the restaurant and foodservice industries nationwide. We thank Congressman Kelly (R-PA) for his leadership on the ‘Restaurant and Retail Jobs and Growth Act.’”

The Depreciation Fairness Coalition:

“The Coalition applauds the Committee for marking up H.R. 765, the ‘Restaurant and Retail Jobs and Growth Act,’ and urges each member of the Committee to support the bill.”

Dan Wilson, CFO of Eat’n Park Hospitality Group:

“We fully support the idea of a permanent 15-year depreciation schedule for the restaurant industry and we thank Congressman Kelly’s leadership on this issue. In our business, because of the wear and tear a public restaurant incurs, we will be out of business very quickly if we aren’t continually refreshing and reinvesting in our businesses. A 39-year depreciation schedule in the restaurant industry simply is not aligned with real world spending practices.”

Excerpts of Rep. Kelly’s op-ed in Roll Call, “Helping Restaurants Serve Up Jobs”:

In America, 130 million people do their eating at a million different restaurant locations every single day, which, of course, translates into an awful lot of business, entrepreneurship and employment.

The Restaurant and Retail Jobs and Growth Act (HR 765), which I’ve introduced over the past two Congresses with bipartisan support, recognizes the inherent economic horsepower behind these enterprises and makes it easier for them to expand and create more job opportunities for more Americans.

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Think about it: Which diner would you rather visit — the one with ripped seats, stained furniture and crumbling walls, or the one that looks clean, new and welcoming?

The answer is easy, and thus an onerously long depreciation schedule can spell the demise of an establishment — and the jobs it provides — regardless of the quality of its food. On the flip side, a write-off schedule that reliably reflects a restaurant’s needs and operations can help eateries better accommodate their customers and flourish.

That is why repeated congressional action has allowed restaurants to operate on a temporary 15-year depreciation schedule, which more closely matches economic reality but is still unpredictable and unstable. My bill would make the 15-year schedule permanent.

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According to the Bureau of Economic Analysis, every dollar spent in the construction industry generates an additional $2.39 in spending in the rest of the economy. In 2011 alone, restaurants spent more than $6 billion on new construction, which led to the creation of approximately 172,000 new jobs.

Especially as our economy continues to underperform, it is vital that proven job-creating engines such as restaurants have the certainty they need to invest, grow and put more Americans back to work. Granting long-term tax stability to our nation’s bistros, diners, pubs, taverns and drive-throughs will help their surrounding communities thrive and spawn surefire economic growth from coast to coast.

Video of today’s full hearing can be viewed here.

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