The U.S. House and Senate have each passed legislation to overhaul the nation’s tax code and are moving fast to negotiate a final tax reform package.
Both versions of H.R. 1, the Tax Cuts and Jobs Act, include an expansion of “business expensing,” including the addition of property for which small- and medium-sized business can fully deduct in the year incurred, under Section 179 of the tax code. But the Senate bill would make costs associated with fire protection and alarm systems, and security systems eligible for Section 179 expensing — eliminating a significant disincentive to modernizing security and life safety technology. Current IRS regulations require customers to “capitalize” the cost of these systems over the 39-year depreciation life for buildings, despite the need for updates on a much more frequent basis.
SIA is leading a coalition of industry groups in urging Congress to expand Section 179 eligibility for key building improvements.
To read more and to download a copy of the letter SIA sent to Speaker of the House Paul Ryan, visit http://bit.ly/2krpy9l.