I 
110TH CONGRESS 
1ST SESSION H. R. 2936 
To amend the Internal Revenue Code of 1986 to provide a shorter recovery 
period for the depreciation of certain improvements to retail space. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 28, 2007 
Mr. NEAL of Massachusetts (for himself, Mr. ENGLISH of Pennsylvania, Mr. 
DAVIS of Alabama, Mr. SAM JOHNSON of Texas, and Mr. RAMSTAD) in-
troduced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a shorter recovery period for the depreciation of certain 
improvements to retail space. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. RECOVERY PERIOD FOR DEPRECIATION OF 
CERTAIN IMPROVEMENTS TO RETAIL SPACE. 
(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 (vii), by striking the period 
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at the end of clause (viii) and inserting ‘‘, and’’, and by 
adding at the end the following new clause: 
‘‘(ix) any qualified retail improvement 
property.’’. 
(b) QUALIFIED RETAIL IMPROVEMENT PROPERTY.— 
Subsection (e) of section 168 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(8) QUALIFIED RETAIL IMPROVEMENT PROP-
ERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
retail improvement property’ means any im-
provement to an interior portion of a building 
which is nonresidential real property if— 
‘‘(i) such portion is open to the gen-
eral public and is used in the trade or 
business of selling tangible personal prop-
erty or services to the general public; and 
‘‘(ii) such improvement is placed in 
service more than 3 years after the date 
the building was first placed in service. 
‘‘(B) CERTAIN
IMPROVEMENTS
NOT
IN-
CLUDED.—Such term shall not include any im-
provement for which the expenditure is attrib-
utable to— 
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‘‘(i) the enlargement of the building, 
‘‘(ii) any elevator or escalator, or 
‘‘(iii) the internal structural frame-
work of the building.’’. 
(c) REQUIREMENT TO USE STRAIGHT LINE METH-
OD.—Paragraph (3) of section 168(b) of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subparagraph: 
‘‘(I) Qualified retail improvement property 
described in subsection (e)(8).’’. 
(d) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to 
subparagraph (E)(viii) the following new item: 
‘‘(E)(ix) ...........................................................................................
39’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to qualified retail improvement 
property placed in service after the date of the enactment 
of this Act. 
Æ 
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