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Proposed Changes to Real Estate Tax Depreciation Rules

Original title: Renewing Investment in American Workers and Supply Chains Act

Record date · August 1, 2024

Introduced
Committee
Floor Vote
Passed
Law

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Public stanceCommunity reactions are separate from the official record and reporting.

What This Bill Would Do

This bill would change how businesses and landlords calculate tax deductions for real estate by setting a 20-year for all residential and nonresidential property. It also introduces a 'neutral cost recovery' adjustment to account for inflation, which would modify annual deductions for both new and existing properties.

Why it matters

Property owners and real estate investors would see changes to their annual tax deductions, which could alter the long-term financial return on commercial and rental real estate investments.

Background
  • Mr. Braun is a U.S. Senator representing Indiana. context
  • The Senate Committee on Finance is responsible for overseeing federal tax legislation. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Commercial real estate owners

The bill changes the depreciation schedule and annual deduction calculations for nonresidential property.

Directly affected

Residential rental property owners

The bill changes the depreciation schedule and annual deduction calculations for residential rental property.

Directly affected

Pass-thru entities

Entities such as partnerships, S corporations, and REITs are subject to specific rules regarding how these new deductions affect their basis and tax reporting.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

How does this bill affect existing rental properties?
The bill applies a 'neutral cost recovery' adjustment to properties already in service, using the date of enactment as the reference point for calculating the inflation-adjusted deduction.
What is the 'neutral cost recovery ratio'?
It is a calculation used to adjust deductions, derived from the and a 3% annual growth factor, intended to account for inflation over the life of the property.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently filed. The next step in the legislative lifecycle is Committee.

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

AARP

$4,110,000

2026

HEALTH ISSUESMEDICARE/MEDICAIDLAW ENFORCEMENT/CRIME/CRIMINAL JUSTICEPHARMACY

“P.L. 119-21, One Big Beautiful Bill Act H.R. 8867, Planning for Long-term Aging Needs (PLAN) Act H.R. 5861, Legacy Act of 2025 H.R. 9393, the Lower Costs, More Transparency Act. H.R. 9396, the Prior Authorization Accountability Act. S. 4916, the Aging with Artificial Intelligence Act. H.R. 8100, Safe Staffing Saves Lives Act. S. 3886, Nurses Belong in Nursing Homes Act. H.R. 6766/S. 3492, the Essential Caregivers Act of 2025. H.R. 7966/S. 4118, Hospice Care Accountability, Reform, and Enforcement (Hospice CARE) Act. S. 2120, the Older Americans Act Reauthorization Act of 2025 H.R. 5575, the Firefighters Assisting Seniors to Emergency Response (FASTER) Act of 2025. H.R. 3954/S. 4641, Improving Access to Medicare Coverage Act. H.R.5554/S.2831, Stand Strong for Medicare Act. S. 3439/H.R. 6735, Connecting Caregivers to Medicare Act and efforts related to the bill S. 1227/H.R. 2491, Alleviating Barriers for Caregivers Act S. 668/H.R. 3183, Supporting Access to Falls Education and Prevention and Strengthening Training Efforts and Promoting Safety Initiatives (SAFE STEPS) for Veterans Act of 2025 CMS-1851-P, Hospice Proposed rule. CMS-1843-P, Skilled Nursing Facility Proposed rule. CMS-1844-P, Home Health Proposed rule. No bill number. Health care transparency. No bill number. Discussed use of artificial intelligence and health data technology. No bill number. Discussed health-related policies and activities around the fall respiratory virus season. No bill number. Discussed health insurance affordability proposals. No bill number. Discussed Nursing Home staffing standards, safety, and quality. No bill number. Discussed Nursing home transparency and ownership requirements. No bill number. Discussed home health, hospice, and long-term care. No bill number. Discussed falls prevention. No bill number. Discussed social isolation. No bill number. Discussed HUD Assisted Living Requirements No bill number. Discussed family caregiving. No bill number. Discussed AARP paper on Medicare Caregiver Training Services. No bill number. Discussed Medicaid community engagement interim final rule, including the family caregiver exemption. No bill number. Discussed the paid direct care workforce in long-term care. No bill number. Discussed the unaffordability of long-term care. No bill number. Discussed Money Follows the Person Rebalancing Demonstration Program and Medicaid HCBS spousal impoverishment protections. No bill number. Discussed Medicaid fraud and family caregivers, Medicaid self-direction programs. No bill number. Discussed sandwich generation family caregiver hearing and submitted a statement for the record discussing family caregivers and sandwich generation caregivers, programs that support them, AARP caregiving resources, and federal policies to support sandwich generation caregivers and caregivers more broadly. No bill number. Discussed long-term care. No bill number. CMS-2453-NC; Medicaid Program; 2028 Medicaid Home and Community-Based Services Quality Measure Set Submitted comments No bill number. Discussed expanding access to home care. No bill number. Discussed the increasing cost of home care No bill number. Discussed HSA use for telehealth chronic care management services/subscriptions. No bill number. Discussed artificial intelligence and technology”

Senate LDAMatched on title words onlyView on LDA.gov →

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Inflation-Adjusted Depreciation

The bill introduces a novel 'neutral cost recovery' mechanism that ties depreciation deductions to the GDP deflator, effectively indexing tax deductions to inflation.

Connected Entities

Bureau of Economic Analysis, Senate
OrganizationBureau of Economic Analysis“Used to calculate the neutral cost recovery ratio”Map →
OrganizationSenate“Introduced by Senator Braun”Map →

Sources

Open source document

www.congress.gov

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy40
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz20
    Current news / social attention level

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