WASHINGTON The National Restaurant Association applauded elements of the $15 billion jobs bill that passed the U.S. Senate Wednesday by a vote of 70 to 28.
In a letter sent out earlier this week to members of the Senate, Scott DeFife, the NRA’s executive vice president of Policy and Government Affairs, had said the association supported proposals in the bill that would extend the temporary increase in the annual amount small businesses can expense from $125,000 to $250,000.
The association also backed provisions in the bill that provide a payroll tax holiday and tax credit for operators who hire and retain certain employees.
However, several other business-friendly provisions urged by the NRA did not make it into the final Senate bill. The first would have extended the 15-year depreciation schedule for restaurant improvement/new construction, leasehold improvements and retail improvements. This provision, which shortened the schedule from the original 39-year write-off period for such improvements, had expired at the end of 2009.
The NRA also had called for an increase in the deduction of business meals and entertainment from the current 50 percent up to 80 percent.
“Increasing the deduction is a benefit not only to restaurateurs and their employees, but to their guests as well — the small business owner or self-employed,” DeFife had written. “Furthermore, an increase in the business meal deduction to 80 percent is estimated to increase business meals sales by $6 billion, create an $18 billion increase in the overall economy, and result in 167,000 jobs.”
In the letter, the NRA also had called for easier access to capital, saying that small foodservice operators are unable to expand in this environment as a result of current lending practices and policy constraints. The association said legislation that would increase the maximum amount of SBA-backed loans from $2 million to $5 million should be enacted.
Leaders in House of Representatives are now working to craft a bill based on the Senate measure.
Contact Paul Frumkin at [email protected].
