Independent Grocers Urge Congress to Fix ‘Retail Glitch’ Now
The National Grocers Association (NGA), which represents the independent supermarket sector, has sent a letter requesting that congressional leaders include the Restoring Investment in Improvements Act in any end-of-year spending package.
The bill would resolve the “retail glitch,” a drafting error in the 2017 Tax Cuts and Jobs Act (TCJA) that causes interior remodels to independent grocery stores to depreciate over 39.5 years rather than the earlier policy of 15 years. The error, as NGA calls it, also keeps grocers from getting Congress’ intended benefit of 100% bonus depreciation for qualified improvement property (QIP).
“The retail glitch creates uncertainty for family-owned and privately held retailers and wholesalers throughout the U.S., preventing the completion of vital upgrades and investments in their stores,” noted Greg Ferrara, president and CEO of Arlington, Va.-based NGA. “Independent grocers provide communities of all types with access to affordable and nutritious food options and are instrumental in fighting food insecurity and eradicating food deserts. Leadership must act to ensure independent grocers can invest in their businesses, employees and communities for years to come.”