To amend the Internal Revenue Code of 1986 to provide a shorter recovery period for the depreciation of certain restaurant buildings.

February 5, 2003

Mr. FOLEY (for himself, Mr. MCINNIS, Mr. HERGER, Mr. GIBBONS, Mr. MCHUGH, Mr. TIBERI, Mr. MILLER of Florida, Mr. ROGERS of Kentucky, Mr. CRENSHAW, Mr. GREEN of Wisconsin, Mr. SMITH of Michigan, and Mr. WELDON of Florida) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to provide a shorter recovery period for the depreciation of certain restaurant buildings.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. RECOVERY PERIOD FOR DEPRECIATION OF RESTAURANT BUILDINGS.

(a) 15-YEAR RECOVERY PERIOD- Subparagraph (E) of section 168(e)(3) of the Internal Revenue Code of 1986 (relating to 15-year property) is amended by striking `and' at the end of clause (ii), by striking the period at the end of clause (iii) and inserting `, and', and by adding at the end the following new clause:

`(iv) any section 1250 property which is a retail restaurant facility.'

(b) RETAIL RESTAURANT FACILITY- Subsection (e) of section 168 of such Code is amended by adding at the end the following new paragraph:

`(6) RETAIL RESTAURANT FACILITY- The term `retail restaurant facility' means any building if more than 50 percent of the building's square footage is devoted to preparation of, and seating for on-premises consumption of, prepared meals.'

(c) ALTERNATIVE SYSTEM- The table contained in section 168(g)(3)(B) of such Code is amended by inserting after the item relating to subparagraph (E)(iii) the following new item:

20'.

(d) EFFECTIVE DATE- The amendments made by this section shall apply to retail restaurant buildings placed in service after the date of the enactment of this Act and to all improvements made after the date of enactment.

END