Fire and life safety professionals can now show their building owner clients an immediate tax savings from the retrofit work they perform. Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act on March 27, 2020 in response to the COVID-19 pandemic, which included a technical correction regarding qualified improvement property (QIP). The correction makes most interior building renovation costs, including those for fire protection and alarm systems, incurred in 2018 and beyond eligible for 100% bonus depreciation.

Building owners can now immediately write-off most or all of the cost of retrofitted interior building systems and also claim accelerated deductions for interior improvements made previously in 2018 and 2019. Additionally, the CARES Act now allows for 2018 and 2019 net operating losses (NOLs) to be carried back up to 5 years for immediate refunds, which opens up additional tax saving opportunities.

The session will cover a variety of topics, including:

  • An overview of relevant CARES Act provisions
  • QIP and the Section 168 technical correction
  • Case studies highlighting tax savings based on typical retrofit scenarios
  • 5-year net operating loss (NOL) carrybacks and other relevant opportunities for fire and life safety professionals

To learn more about these tax saving benefits, please contact us.