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. The Security Industry Association (SIA) is leading a coalition of industry groups in urging negotiators to retain a provision that will support growth and job creation in the security industry, while improving safety and security throughout our nation’s commercial infrastructure.
The current Senate bill would make costs associated with fire protection and alarm systems, and security systems, eligible for “Section 179 expensing,” eliminating a significant tax disincentive for customers to utilize modern 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. Under the Senate provision, small- and medium-sized business would be able to deduct the cost of fire and security systems in the year incurred.
“Expanded expensing is the most effective way of lowering the cost of capital investment in buildings, equipment and technology. This is critical to increasing the size of the U.S. economy by helping small- and medium-sized businesses reach their growth potential. As you know, both House and Senate bills increase the scope of Section 179 by adjusting the dollar limits and expanding categories of qualified expenses,” said the coalition in a recent letter to Congress.
“We urge the conferees to ensure that the final tax overhaul includes all of categories for expansion in the bills—roofs, heating, ventilation and air-conditioning (HVAC), fire protection and alarm systems, and security systems.”
At this critical time, your help is needed to speak up in support of ensuring this important provision is included in the final tax reform package. Click here to send a message to your Members of Congress in support of this critical effort through SIA’s website. It only takes a few seconds!