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Tax Changes: New Depreciation Rules for Business and Rental Properties

This act modifies how depreciation is calculated for nonresidential real property and residential rental property. It changes the recovery period and introduces a neutral cost recovery mechanism based on inflation indicators. These changes affect how property value is accounted for over time.
Key points
Nonresidential and residential rental properties will be depreciated over a 20-year period.
A neutral cost recovery system is introduced, utilizing the GDP deflator to calculate additional deductions.
Additional deductions from neutral cost recovery are not treated as depreciation for purposes of sections 1245 and 1250, nor do they affect the adjusted basis of the property.
article Official text account_balance Process page
Expired
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Additional Information
Print number: 117_S_4012
Sponsor: Sen. Braun, Mike [R-IN]
Process start date: 2022-04-06
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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_S_4012.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-04-06.

What are the main provisions?

Key points include:

  • Nonresidential and residential rental properties will be depreciated over a 20-year period.
  • A neutral cost recovery system is introduced, utilizing the GDP deflator to calculate additional deductions.
  • Additional deductions from neutral cost recovery are not treated as depreciation for purposes of sections 1245 and 1250, nor do they affect the adjusted basis of the property.
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 Sen. Braun, Mike [R-IN].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

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