The United States recently passed the 2020 “CARES” Act (Coronavirus Aid, Relief, and Economic Security). CARES included a change to the tax code to ensure QIP (Qualified Improvement Property) investments benefit from an expedited tax deduction for the full project cost.
CARES enables building owners to enhance their building’s Indoor Air Quality (IAQ) with HVAC products ranging from filters to entire systems. For commercial buildings, the HVAC equipment cost for 2020 projects may be fully deducted as a business expense, and the most recent update in 2021 continues to further incentivize IAQ installations. We know indoor air quality can contribute to the health and safety of occupants, as well as structural integrity. The CARES Act provides the potential for significant cost savings now and in the future, from energy expenses to maintenance costs.
Now, non-residential building owners can capitalize on HVAC and mechanical system upgrades and replacements. The CARES Act can also be leveraged with additional utility rebates making the project/product investment even more attractive. The added benefit is that this tax benefit is retroactive now through January 1, 2018, for QIP costs incurred.
Let’s help utilize and maximize the benefits of The CARES Act. Reach out or learn more.