Tax Credits for Your Business
Building owners are now able to fully expense qualifying fire alarm improvement costs in year one.
The 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act provides economic assistance to American workers, families and small businesses, including tax savings for businesses.
The CARES Act allows commercial building owners to benefit from an accelerated tax deduction for the full cost of such property due to tax code changes related to “qualified improvement property” (QIP) investments. Under Section 168 of the CARES Act tax code, the cost of improvements to existing fire alarm and life safety systems can now be fully deducted for tax purposes in the first year versus over a 39-year period. The benefit for building owners is the qualified investment may be fully deducted as a business expense in the first year, immediately reducing their costs.
Click here to learn more about how the CARES Act Section 168 works and to view the original document from Honeywell Fire Solutions.