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2018 100% Bonus Depreciation Deduction

by | Oct 22, 2018 | news | 0 comments

tax blog final

There’s still time to make big improvements to your data center AND take advantage of this lucrative tax benefit.

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 you – the facility – to get things done?

With the 100 percent bonus depreciation deduction passed by congress last year, there’s actually 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

Tax reforms passed in 2017 offer businesses and manufacturers 100 percent bonus depreciation on qualified property and equipment. The U.S. Treasury’s recent clarifications to the law shed light on this lucrative benefit. To claim 100 percent bonus depreciation deductions in the 2018 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 few months left in the year, substantial improvements can be made in your data center. In a matter of weeks, you can improve airflow and containment, mitigate power interruptions, or better optimize existing infrastructure. Just some of the solutions CEG can provide and install before December 31 include:

With these solutions, CEG will not only improve the efficiency and uptime of your data center, but also may help your company achieve real tax savings. But time is running out so please contact us TODAY at [email protected] 800.257.5235 to discuss your critical environment issues.

*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.