A mistake in the tax law is starving retailers of much needed cash to make improvements to their stores. This typo, known as the “retail glitch,” means retailers can only deduct 2.5% of their remodel costs in the year they are incurred, instead of 100%, making the value of the deduction 1/40 of what it should be! Congress knows it made a mistake and have refused to act because of partisan politics.
The time is now for Congress to fix the retail glitch. Failure to act means most retailers, restaurants and grocery stores face:
- Higher costs of making investments
- The retail glitch is costing the retail industry hundreds of billions of dollars.
- Burdensome and costly additional accounting hours
- Retailers will file their tax returns following the mistake in the law and then face hundreds of accounting hours to amend their tax returns when Congress finally fixes their error.
Retailers suffer because Congress didn’t do its work. Tell Congress to fix the retail glitch.