Falls under Section 168 of the tax code known as MACRs (Modified Accelerated Cost Recovery System).

No – there is no limit on the cost of equipment that can be deducted. You can also combine it with other incentives like renewable energy tax credits and utility rebates.

Non-residential: Hospitals/healthcare Commercial buildings Factories, plants Warehouses Retail, restaurants, hospitality

New construction (if building changes are required to adapt new equipment) Upgrades to the facility’s structure (e.g., expansions, remodeling, etc.) Elevators and escalators or anything to do with the building’s structural framework External envelope of the building (e.g., windows, doors, roof, cladding) Residential structures Certain equipment (e.g., elevators)

Qualified improvement expenses under the CARES Act must be to the interior of a Qualified Improvement Property (QIP) and not alter the building’s internal structural framework (see below). Uninterruptible power supplies, switchgear, and other electrical distribution equipment upgrades, such as direct replacements, retrofills, virtual mains, immediate mobile generator power and other custom solutions Turnkey projects [...]

Leaseholders or owners of nonresidential buildings.

Accelerated depreciation – companies can deduct expenses sooner to receive bigger benefits sooner.

CARES = The Coronavirus Aid, Relief, and Economic Security Act. A $2.2 trillion economic stimulus bill signed into law on March 27, 2020. QIPs = Qualified Improvement Properties. QIP’s are considered buildings or leasehold improvement (a modification to occupied space such as adding airflow containment structuring).