Tax Incentives for Fire Sprinkler Installation

The most sweeping tax reform changes since 1986 have brought incredible opportunities for small businesses in need of fire sprinklers.

The fire sprinkler incentives are:

Small Business Section 179 Expensing

• Previously qualified small businesses were allowed to fully expense purchases such as computers, equipment, and light duty vehicles up to an annual cap of $500,000.  Under the new law Congress has added fire protection as an eligible expenditure under section 179 of the tax code.  Congress also increased the cap to $1 million as the amount that a small business can deduct in a single year.  This provision applies only to commercial structures and cannot be used for retrofitting sprinklers into residential structures.  However, critical occupancies such as entertainment venues could easily be done under the this provision.  this change is also a permanent law and unlike section 13201 is not gradually phased out over time.
• Previously, fire sprinkler systems were depreciated over 39 years in commercial buildings and 27.5 years in residential structures.  These significant tax changes would potentially allow for immediate cost recovery.

Call us today if you have any questions and we'll be happy to help you.