Business Tax Incentives Promote Investment In Life-Saving Fire Sprinkler Systems
Fire sprinkler systems are among the best investments business owners can make when it comes to protecting their employees, customers, and other valuable assets – such as property and inventory – from dangerous, destructive fires.
For cost-conscious companies operating in a hyper-competitive marketplace, however, the installation price (ranging from $1 to $2 per square foot for new construction and $2 to $7 for building retrofits) may seem prohibitive.
Fortunately, tax legislation approved in 2017 provides incentives designed to make it more affordable for business owners to protect their futures:
- Under Section 179 of the Federal Tax Code, small businesses are now allowed to deduct the cost of installing fire sprinklers on their federal tax returns (up to $1 million per year). *
- Businesses may also deduct the interest on any loans they take out to fund these upgrades. *
- The law allows larger companies to fully expense these costs through 2022. Allowable deductions will decrease each year after. **
“Fire sprinkler systems are designed to contain a fire at its origin and prevent it from spreading to other parts of a structure,” explains BCFPD Fire Prevention Director Rob Martel. “Sprinklers buy additional time for customers and staff members to evacuate and help minimize the risk of serious injury before firefighters arrive on-scene.”
The BCFPD recommends that property and business owners first consult with a tax professional to fully understand the law’s impact on their specific situation.
For more information on the benefits of fire sprinkler systems, contact BCFPD Fire Prevention Director Rob Martel (224-848-4860 or email@example.com).