CARES Act Provides Tax Incentives to Upgrade your Power and Cooling Equipment
The 2020 Coronavirus Aid, Relief, and Economic Stability (CARES) Act allows a full deduction of certain project costs in a single year, without limitation on the size of the project. This tax incentive aims to assist critical facilities in the modernization, upgrade, or even replacement of critical infrastructure.
Examples of equipment and services that may qualify:
- Uninterruptible Power Supplies (UPS)
- HVAC equipment including sensors, valves, and airflow management
- Data Center Infrastructure Equipment
- Building Management Systems
- Other non-structural upgrades including equipment and installation costs
Examples of facilities that may qualify:
- Data Centers
- Hospitals and healthcare facilities
- Office Buildings
- Factories and Plants
- Transportation hubs and logistics facilities
Section 168 of the CARES Act applies to Qualified Improvement Properties (QIP) and states there is no limit to the cost of equipment that can be expensed. Further, these deductions can be combined with other incentives such as renewable energy tax credits and utility rebates*.
While the CARES Act corporate tax incentives are set to be in place beyond the end of the year, the discounts our vendor partners are offering for the remainder of 2020 combined with the new tax codes make this the perfect time to consider initiating some of the projects you may have been putting off.
Follow-us on LinkedIn for the latest news and announcements.