The CARES Act Cares About Your Security – and So Do We!
The COVID-19 pandemic has been a costly one, to say the very least. It’s cost loss of lives and loss of livelihoods. It has shut down the entire country, and much of our economic prosperity. As lockdowns are slowly being lifted, and companies prepare to reopen, they are faced with an entirely new set of challenges. Complying with health and safety guidelines require putting Social Distancing measures in place, implementing temperature screening procedures, and creating an environment that is as contactless as possible.
Technology is proving a viable partner in this process. There are many solutions available to meet these challenges, including touchless access control for enhanced access authentication, time & attendance, visitor and event management, and thermal cameras for medical/temperature screening.
These capabilities can provide enterprises of all kinds – commercial, industrial, healthcare, utilities, retail, hospitality and more – with the safety and security upgrades they now need. However, given the astronomical costs that the COVID-19 crisis has levied, budgeting for these upgrades can be a challenge for some organizations.
As your trusted security integration partner, NextGen wants you to be aware that there is some much needed relief in sight. It comes courtesy of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law by President Trump on March 27th, 2020. This $2 trillion+ economic relief package is designed to protect the American people from the public health and economic impacts of COVID-19.
Part and parcel of the CARES Act, which provides fast and direct economic assistance for American workers, families, and small businesses, is Section 168(k) regarding Quality Improvement Property (QIP). QIP is defined as any improvement made by the taxpayer to an interior portion of a building that is non-residential real property if such an improvement is placed in service after the date such building was first placed in service.
Simply stated, as it pertains to you, our valued customers, is that Section 168(k) allows a company to deduct the entire cost of the installation of a security system. Specifically, the Section 168(k) tax code allows that the cost of electronic security can be fully deducted for tax purposes.
Included as QIP are security systems for protecting the building and those who occupy it, spanning motion detectors, security lighting and cameras, recorders, monitors, alarm systems, window and door locks, and access control systems to include wiring, junction boxes, and conduit. Also deemed QIP are fire protection and alarm systems, visual and audible alarms, alarm control panels, heat and smoke detection devices, emergency exit lighting and signage, and fire extinguishers and hoses.
Under the new law, the owner now may deduct the full equipment and installation cost from their business income the year of purchase and installation.
The time has never been better – or more important – to consider upgrades to your existing life safety and security systems. NextGen is a full service solutions provider and stands at the ready to help with all of your needs, including Thermal Video Analytics, Access Control, Video Management, Communication Systems, and more.
Whether your organization is commercial or industrial, we offer best-in-class knowledge, engineering design, implementation, management, and ongoing maintenance services, and technology specifically dedicated to meeting your unique requirements.