CARES Act 2020 – Install a New System and Save with a Tax Deduction

The CARES (Coronavirus Act, Relief and Economic Security) Act allows companies to take a tax deduction* year one when they install and put a qualifying life safety system in service.

In the past, the depreciation had to be taken over a thirty-nine (39) year period. Taking the tax benefit now can reduce your overall cost of equipment and installation. 

BENEFITS OF CARES ACT

Benefit 1: Take 100% depreciation year 1 for full equipment & installation cost
Benefit 2: There is no cap to the cost of the equipment and labor
Benefit 3: Deduction can be taken all the way back to the beginning of 2018

SYSTEMS THAT QUALIFY

  • Sprinkler Systems
  • Fire Alarm Systems
  • Special Hazards/ Clean Agent Systems

Now is the time to talk to your tax professional to find out if your business qualifies for the tax deduction. If so, we are here to help. 

*Always consult your tax advisor to confirm your project and/or building qualifies for this tax benefit.

Four Fire Safety Terms Every Business Owner Should Know

Whenever you run a business there is a lot to learn – not just about your industry but about all the support systems that allow you to operate legally and safely. From insurance to legal-speak to safety codes, there’s a lot to take in and understand. When it comes to fire safety, it’s no different.

Don’t worry though, we’re here to help drill down some of the lingoes you should know and be aware of so that your workspace is safe and that you know what needs to be done and why it needs to be done. Here are four basic terms you should know when it comes to your businesses’ fire safety.

NFPA Standards

NFPA stands for National Fire Protection Association. and they are responsible for issuing industry standards for safety.

The major codes for fire protection are:

  • NFPA 10 (fire extinguishers)
  • NFPA 25 (sprinkler systems)
  • NFPA 72 (alarm system)

You don’t need to know these codes inside and out, but when you hear them brought up by an inspector or fire safety professional, that’s what they’re talking about.

Wet and Dry Pipe

Whenever you’re going to install or upgrade a sprinkler system, there are two main types of sprinklers – wet and dry pipes. They make up basically all of the sprinkler systems you’d see in a run of the mill commercial space.

Wet pipe systems are the most common and they draw off the water supply to spray water and the pressure at which the water is distributed is what will put out a fire. The pipes are like any water pipe – they’re always full of water and with that comes some good and some bad. If the pipes burst, you’ll have a water problem so, like any plumbing asset, it’s a good idea to make sure they’re inspected regularly.

Dry pipes draw off a water source that’s hooked up right next to the sprinkler valve. Those pipes aren’t full of water; instead, they’re full of compressed air. When the sprinkler head pops, the airflow opens up in the valve and out comes the water. If you work in a building with little heat, this is the type of system you’ll be most likely to encounter. You see a lot of them in parking garages and the like – and they basically exist to make sure that the pipes won’t burst in the cold temperature.

Clean Agents

Clean Agents is a fancy term to describe chemical suppression systems. Chemical suppression is used in places where you don’t want water to do a number on anything that might get destroyed by water. People use these in data centers, museums, or anyplace where there’s water-sensitive equipment.

Backflow Preventers

Backflow is basically what happens when a liquid, gas or solid back up into a water supply and contaminate your water. These are commonly used in wet pipe configurations so that bad stuff doesn’t get into the water. After all – a leaky pipe or fire is bad enough – you don’t need any other potential hazards contaminating your space in addition to all that!

If you have any questions about today’s topic or any other fire protection topic, please contact Protegis Fire & Safety. We will be happy to help.