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Real Estate Depreciation Changes: Shorter Period, Inflation Adjustment

This act modifies depreciation rules for nonresidential and residential rental properties, shortening the recovery period to 20 years. It also introduces an inflation-adjusted deduction mechanism, potentially impacting taxes for property owners and investors. The goal is to encourage investment and support supply chains.
Key points
The depreciation period for nonresidential and residential rental properties will be shortened to 20 years, potentially accelerating return on investment.
A neutral cost recovery mechanism will be introduced, adjusting deductions for inflation, which could increase the value of tax write-offs over time.
These property types will no longer qualify for bonus depreciation, meaning large upfront deductions will not be available.
The changes apply to properties placed in service and taxable years ending after the act's enactment date.
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Expired
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Additional Information
Print number: 117_HR_7229
Sponsor: Rep. Walorski, Jackie [R-IN-2]
Process start date: 2022-03-24
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Renewing Investment in American Workers and Supply Chains Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_7229.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2022-03-24.

What are the main provisions?

Key points include:

  • The depreciation period for nonresidential and residential rental properties will be shortened to 20 years, potentially accelerating return on investment.
  • A neutral cost recovery mechanism will be introduced, adjusting deductions for inflation, which could increase the value of tax write-offs over time.
  • These property types will no longer qualify for bonus depreciation, meaning large upfront deductions will not be available.
  • The changes apply to properties placed in service and taxable years ending after the act's enactment date.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Walorski, Jackie [R-IN-2].

What is the latest detailed status?

The latest detailed status is: ASSUMING FIRST SPONSORSHIP - Mr. Hern asked unanimous consent that he may hereafter be considered to be the first sponsor of H.R. 7229, as bill originally introduced by Representative Walorski of Indiana, for the purposes of adding cosponsors and requesting re-printings pursuant to clause 7 of rule XII. Agreed to without objection.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-02.

CATEGORIES

Taxes Real Estate Economy