System Sensor CARES Act Tax Credits

Tax Credits for Your Business Act Tax Credits for Fire Alarm Life Safety Retrofits or Upgrades owners can now fully expense qualifying fire alarm costs in year one 2020 Coronavirus Aid Relief and Economic Security Act provides economic assistance to American families and small businesses including tax savings businesses CARES Act allows commercial building owners to from an accelerated tax deduction for the full cost of property due to tax code changes related to property QIP investments Under Section of the CARES Act tax code the cost of improvements to fire alarm and life safety systems can now be fully for tax purposes in the first year versus over a 39 period The benefit for building owners is the qualified may be fully deducted as a business expense in first year immediately reducing their costs Facts on Section Qualified Improvement QIP Applies to existing commercial and non residential buildings new construction does not apply improving the interior of the property Cost of equipment and labor are considered part of the full taxable deduction No limits or caps on amount of product purchased for QIP Can retroactive prior QIP costs incurred back to January 1 2018 of How the CARES Act Section Works commercial building owner with mixed use property less than 80 of their rental income from dwelling units do apply for CARES Act has a Honeywell authorized fire and life safety company install a new fire alarm system with and installation cost of 100,000 Under previous depreciation rules business owner would claim approximately 2,564 in depreciation deductions year over 39 years for a year one net equipment cost of 99,051 the CARES Act the building owner may deduct the full equipment and cost of 100,000 for a year one net equipment cost of 63,000 Act Act Costs for and Life Safety System 1 Annual Deduction Corporate Tax Rate 1 deduction x tax rate Equipment Costs Year 1 Circular 230 Disclosure To ensure compliance with requirements imposed the IRS we inform you that any U S tax advise contained in this communication not intended or written to be used and cannot be used for the purpose of i tax related penalties under the Internal Revenue Code or ii promoting or recommending to another party any transaction or matter addressed 8 20