The Security Industry Association (SIA) today released a fact sheet, “New Tax Incentives for Security and Fire Protection Systems,” to explain how new U.S. tax reforms allow many businesses to deduct the full cost of security and fire protection systems as an expense for the tax year in which they are placed in service.
Under the new law, businesses may eliminate the capitalization requirement of depreciating the cost of a security or fire protection system over a period of up to 39 years, depending on applicable factors.
“New Tax Incentives for Security and Fire Protection Systems,” a SIA fact sheet, is available for download.
“Since 2003, SIA has advocated for increased business tax expensing for security and fire protection systems. We have been involved in supporting the related provisions in tax reform that will meet this goal,” said SIA CEO Don Erickson. “The SIA fact sheet provides a good summary to security suppliers and integrators of new tax policies under which small- and medium-sized businesses can deduct up to $1 million in qualifying expenses, designed to spur investments in the economy.”
On Dec. 22, 2017, President Donald Trump signed the Tax Cuts and Jobs Act (P.L. 115-97) into law, creating the new investment incentives beginning in the year 2018. In addition to the new benefit for small- and medium-sized businesses, new law provides for the accelerated, or “bonus,” depreciation of certain security-related investments for all businesses for only a limited number of years before phasing them out, essentially returning bonus depreciation rules to their 2017 parameters.
In an interview with The New York Times on Dec. 28, Trump hailed the new investment incentives as a powerful economic stimulus. “You can do lots of different things, and you can write it off and expense it in one year. That will be one of the great stimuli in history,” Trump said.
SIA recommends businesses check with their tax advisors to see how these new deductions may benefit them. SIA does not provide tax or legal advice.
About the Security Industry Association
The Security Industry Association (SIA) (http://www.securityindustry.org) is the leading trade association for global security solution providers, with more than 800 innovative member companies representing thousands of security leaders and experts who shape the future of the security industry. SIA protects and advances its members’ interests by advocating pro-industry policies and legislation at the federal and state levels; creating open industry standards that enable integration; advancing industry professionalism through education and training; opening global market opportunities; and collaboration with other like-minded organizations. As a proud sponsor of ISC Events expos and conferences, SIA ensures its members have access to top-level buyers and influencers, as well as unparalleled learning and network opportunities. SIA also enhances the position of its members in the security marketplace through SIA Government Summit, which brings together private industry with government decision makers, and Securing New Ground®, the security industry’s top executive conference for peer-to-peer networking.