2020 C.A.R.E.S Act Tax Benefits
WRITE OFF 100% OF QUALIFYING FACILITY IMPROVEMENT COSTS.
The 2020 Coronavirus Aid, Relief, and Economic Stability (CARES) Act allows a full deduction of certain project costs in a single year, without limitation on the size of the project. This combined with the fact that many modern upgrades are energy efficient and typically pay for themselves in a few years makes it a great time to invest in facility upgrades.
In the past, the deduction for facility upgrades was taken over a 39-year period, resulting in a 2.5% write-off each year. This change qualifies certain interior improvements made to nonresidential real property, known as “qualified improvement property” (QIP).
Transworld Electric can help you take advantage of the CARES Act Incentive while improving your electrical system’s safety and reliability.
FACILITIES THAT ARE CONSIDERED “QUALIFIED IMPROVEMENT PROPERTY” (QIP):
- Hospitals and healthcare facilities
- Office building
- Factories and plants
- Logistic facilities
- Any other non-residential property
FACILITY UPGRADES THAT CAN BENEFIT FROM THE ACCELERATED DEDUCTION:
There is no limit on the cost of equipment that can be expensed and you are allowed to combine with other incentives, such as renewable energy tax credits and utility rebated for extra savings.
- electrical
- Uninterruptable power supplies, switchgear, and other electrical distribution equipment
- installation or replacement of drywall
- ceilings, interior doors
- fire protection
- mechanical
- Building management systems
- Plumbing
- Sensors, valves, actuators, and other HVAC devices
- Building management systems
Excluded from the definition are improvements attributable to internal structural framework, enlargements to the building, and elevators or escalators.
