There still is time for commercial building owners to realize significant tax benefits under the 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act. The Act provides that costs of improvements may be fully deducted for tax purposes in the first year they are placed into service. This applies to the current tax year and retroactive to January 1, 2018.

Qualified Improvement Property (QIP) upgrades or replacements may include HVAC, electrical, automation fire alarm or security systems. Installation labor costs also qualify if they are a part of improvements to the interior of a non-residential or commercial building.

Baker Group is available to assist in figuring out what you need and how you can benefit. As in all tax-related matters, Baker Group recommends companies consult their own tax experts.