In March of 2020, the Federal government signed into effect the Coronavirus Aid, Relief, and Economic Security (CARES) Act. One of CARES’ purposes is to provide relief to businesses affected by the Coronavirus with accelerated tax savings on “qualified improvements” to their business properties.
Under Section 168 of the CARES Act, the cost of upgrades to the user’s commercial fire sprinkler, fire alarm, special hazard, or security system may be fully deducted as a business expense if placed into service before the end of 2020. American Fire Protection Group (AFPG) cares deeply about Life Safety and their customers, and they want to make sure all of their clients benefit from this opportunity to upgrade their life safety systems with maximum tax savings.
accelerated cash savings
The cash savings will come from their first year depreciation deduction. The deduction would normally be spread out over 39 years. But under Section 168, one can now deduct the full equipment and labor cost the very first year - giving one the accelerated cash savings. Below are the benefits of Section 168 of the CARES Act, as it pertains to Life Safety System upgrades:
- Includes a full tax deduction for both the equipment and labor costs of Life Safety upgrades to commercial properties
- Tax savings can be retroactive to any Life Safety upgrades performed after January 1, 2018
- No maximum purchase amounts
One can visit the government’s website for more information on the CARES Act. To take advantage of this opportunity, one can also fill out their contact form here, and one of AFPG’s Life Safety experts will contact them to discuss the options regarding the CARES Act.