Under the 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act, commercial building owners can find significant tax benefits this year and retroactive to January 1, 2018.

HVAC, electrical, automation, fire alarm or security systems equipment are included as qualified improvement property (QIP) as detailed under the IRS tax code, section 168. QIP is further explained as any improvement made by a taxpayer to an interior portion of an existing building that is nonresidential property.

In addition, there is no stipulated limitation on the cost than can be expensed under the project(s), and the full amount of equipment and installation labor costs can qualify to be fully depreciated this year.

This benefit is one of many found in the CARES Act. Baker Group can help you figure out what you need and how you can benefit. Additional information is found at https://www.irs.gov/newsroom/additional-first-year-depreciation-deduction-bonus-faq.  As in all tax-related matters, Baker Group recommends companies consult their own tax experts.