"Shortening the recovery period will make renovation and revitalization of business properties more attractive," said Conrad, in announcing the bill. "That's not just good for the property owners. That's good for economic development professionals who want to attract new businesses to empty downtown storefronts or aging strip malls. It's good for entrepreneurs who want to start or expand their businesses. And it's good for the architects and contractors who do the renovations."

NAR president Richard A. Mendenhall notes the cosponsors of the House and Senate bills are from both ends of the political spectrum and from rural and urban areas. "This fact, coupled with the findings of a study by the US Treasury in 2000 that indicates current law for leasehold improvements is unfair, should be proof enough for other lawmakers to recognize that this law needs to be revised," he says.

The NAR is pushing for the legislation because officials say it's unfair for building owners to have to amortize the costs of improvements made for new tenants such as wiring, cable, technology, kitchen and bathrooms over 39 years, since the usual term for leases is between 8 and 15 years. A "more realistic" 10-year span would provide more incentive for owners to upgrade space, says Mendenhall, which in turn helps keep older buildings more viable.