It may seem surprising, given the economic uncertainty currently, but right now is an excellent time to invest in non-residential facility upgrades.
Here’s why: When you invest in upgrades — e.g., install a new HVAC system — you get a tax deduction for the project costs. In the past, this deduction was taken over a 39-year period, resulting in a 2.5 percent write-off each year.
That’s now changed. The CARES Act allows a full deduction of certain project costs in a single year, without limitation on the size of the project. If you’ve been waiting for the right time to make major facility upgrades, the wait is over.