Bipartisan House bill would fix GOP tax law's 'retail glitch'

A bipartisan group of House members on Tuesday offered legislation to fix a portion of President TrumpDonald John TrumpDem senator says Zelensky was 'feeling the pressure' to probe Bidens 2020 Dems slam Trump decision on West Bank settlements Trump calls latest impeachment hearings 'a great day for Republicans' MORE's 2017 tax law that is hurting retailers and restaurants.

The bill — introduced by House Ways and Means Committee members Jimmy PanettaJames Varni PanettaBipartisan group reveals agricultural worker immigration bill Mexican president urges Pelosi to get USMCA trade deal approved Lawmakers beat Capitol Police in Congressional Football Game MORE (D-Calif.) and Jackie WalorskiJacqueline (Jackie) R. WalorskiProtect American patients and innovation from a harmful MedTech Tax increase We should repeal the medical device tax on veterans Heavy loss by female candidate in Republican NC runoff sparks shock MORE (R-Ind.) — would fix a portion of the GOP tax law known as the "retail glitch" that pertains to the time frame in which stores and restaurants can deduct the costs of their renovations.

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"Our bill will allow restaurants, retailers, and other businesses to make the improvements they need to keep their stores competitive and safe and plan for the future," Panetta said in a statement.

Senators introduced a version of the bill in the upper chamber earlier this month.

Prior to the enactment of the tax law, businesses could write off the costs of improvements to their facilities over the course of 15 years. The authors of the tax law intended for the measure to allow businesses to write off the full costs of renovations in the year in which they were made. However, because of an apparent drafting error, retailers and restaurants instead have to write off the costs of their investments over 39 years.

The bill would allow retailers and restaurants to be able to immediately deduct the cost of renovations, as lawmakers had intended when they crafted the tax law. The Joint Committee on Taxation has said the bill would not have an impact on the federal deficit.

Walorski said that the bill "is a small but critical fix for our job creators, and technical corrections like this are a normal part of the process when Congress enacts major reforms."

Several other House members on both sides of the aisle are co-sponsoring the bill. Sens. Pat ToomeyPatrick (Pat) Joseph ToomeyNSA improperly collected US phone records in October, new documents show Overnight Defense: Pick for South Korean envoy splits with Trump on nuclear threat | McCain blasts move to suspend Korean military exercises | White House defends Trump salute of North Korean general WH backpedals on Trump's 'due process' remark on guns MORE (R-Pa.) and Doug Jones (D-Ala.) introduced a companion bill in the Senate earlier this month.

It's unclear exactly when legislation making technical corrections to the GOP tax law will be enacted. Many Democrats have said they want corrections to be paired with more substantive changes to the 2017 law.