100% Bonus Depreciation Deductions Anyone? Your Data Center Can Take Advantage. Find Out How.
November 05, 2019
Editor’s Note: The content for this blog was written by CPI value-added reseller CEG.
As the year winds down, data center vendors and service providers will be pushing to close deals before December 31. While a signed contract is great for us, what’s the motivation for getting things done within your business and facility?
With the 100 percent bonus depreciation deduction passed by Congress in 2017 and the IRS issuing final regulations in September, there’s actually a real incentive for you to not only sign a contract, but also install in the same calendar year. More good news: there’s plenty of efficiencies to be achieved that can qualify for this deduction. Everybody wins!
Understanding the Deduction*
The 2017 tax reforms and newly finalized regulations offer businesses and manufacturers 100% bonus depreciation on qualified property and equipment. Newly finalized regulations from the IRS shed light on this lucrative benefit. To claim 100% bonus depreciation deductions in the 2019 calendar year, the purchases must meet the following criteria:
- Qualify for modified accelerated cost recovery system (MACRS) depreciation,
- Have a recovery period of 20 years or less,
- Be purchased from an unrelated party, and
- Be purchased (signed contract) and placed into service (installed) during the same calendar year.
What Qualifies?
Despite having just a couple of months left in the year, substantial improvements can be made in your data center. While a custom-built solution or ground-up construction isn’t realistic, it is still possible to improve airflow and containment, mitigate power interruptions, or better optimize existing infrastructure. Just some of the standard, yet impactful solutions a data center vendor should be able to provide and install before December 31 include:
With these solutions, you may help your company achieve real tax savings while significantly improving the efficiency and uptime of your data center.
*This material is for informational purposes only. It’s not intended to provide and should not be relied on for tax advice. Please contact your tax advisor when planning your year-end tax strategies.
About the Author
Mike McClain is the Chief Executive Officer of Critical Environments Group. He has more than 25 years of financial and executive business management experience. Mike is also a CPA and a member of the American Institute of Certified Public Accountants.
About CEG
CEG is a national provider of data center and critical environment infrastructure optimization solutions. For more information, please visit www.criticaleg.com.
Posted by Mike McClain, CEO for Critical Environments Group (CEG) at 11/5/2019 8:38:05 AM