by Philip Squair,
Vice President of Government
Relations, NEMA
January/February 2020
As this article is being written, the nation’s
capital and much of the country are
watching congressional hearings on the possible
impeachment of the President. Amid this, NEMA
continues to promote significant initiatives to
implement policies that help NEMA Members be
successful and profitable.
In recent months, NEMA has engaged in two
significant grassroots campaigns. The first
campaign urged passage of the U.S.–Mexico–
Canada (USMCA) trade agreement, and
the second campaign supported passage of
legislation to accelerate the expensing of qualified
improvement property (QIP).
The U.S. electroindustry depends on trade within
North America. As such, both NEMA and the
Administration view approval of USMCA as a top
priority. Members of Congress, state Governors,
and local officials should understand this and
move toward bringing legislation across the finish
line. The electroindustry has emphasized these
points in more than 30 letters to Congress
NEMA also pushed Congress to pass a key tax
provision that benefits the electroindustry and its
customers. QIP projects are those related to any
improvement to the interior portion of an existing
nonresidential building such as remodeling,
installing energy-efficient upgrades, replacing
floors or lighting fixtures, installing electric vehicle
charging stations in the garage, or making safety
and access upgrades.
Due to a drafting error in the Tax Cuts and Jobs
Act of 2017, the period over which businesses
can expense these facility improvements has
nearly tripled—from 15 to 39 years. The error—
acknowledged as such by both Republicans and
Democrats—also excludes these improvements
from bonus depreciation, which allows businesses
full deductibility of allowable investments over a
period as short as one year.
NEMA is part of a broad coalition looking to
pass the QIP fix, and our strategy was to include
legislation in a year-end, must-pass spending
bill. So far, the QIP campaign has resulted in 393
letters being sent to 85 different Representatives
and Senators, a tremendous turnout that adds
momentum to our efforts on Capitol Hill. ei