Tax Cuts and Jobs Act Provides Incentives for Small Business Security Investments

As businesses continue to face various security threats such as burglaries, shoplifting, and false alarms, investing in security measures has become crucial. 

Although these measures can be costly, especially for small businesses, there is a new tax law that gives businesses of any size incentive to purchase security camera systems.

In this article, we will discuss the benefits of using this law to purchase security cameras and how it can help small businesses protect their merchandise, employees, and customers while reducing their overall expenses.

Section 179 Expensing

The Tax Cuts and Jobs Act of 2017 (P.L. 115-97) provides incentives for businesses to invest in new security, fire protection, and alarm systems, making it easier for small businesses to purchase security cameras. 

With the new law, qualifying businesses can write off the full cost of such systems as an expense for the tax year they were placed in service, eliminating the capitalization requirement. Previously, small and medium-sized businesses could deduct most business-related equipment placed in service during a year, up to $500,000, not exceeding taxable income. However, businesses can now deduct up to a total of $1 million in purchases that qualify for Section 179, doubling the dollar limit.

Generally, the costs of these systems are capitalized and depreciated over a recovery period of five, seven, 15, or 39 years.

The new law also extends accelerated depreciation to 100% for qualifying property, generally tangible property with a recovery period of up to 20 years. Certain security and life-safety products may qualify for bonus depreciation, and some improvements to the interior of a building may qualify under the new law’s definition of Qualified Improvement Property.

Why does this matter?

By using tax savings to offset the after-tax system cost, businesses can reduce their overall expenses. Additionally, accelerated depreciation allows companies to free up money now, which can be used for other important purposes. 

Since these systems usually require significant investments, being able to recover the costs quickly can help growing businesses expand their assets. Therefore, businesses need to take a critical look at their security preparedness and implement the proper security measures. 

Don’t become another statistic

By using the Tax Cuts and Jobs Act, small businesses can now purchase security cameras, which are essential for protecting merchandise, employees, and customers from unforeseeable threats such as burglaries, shoplifting, and false alarms. These incidents can result in significant financial losses, which can be devastating for small businesses. For example, shoplifting can result in an average loss of $377 per incident. But with properly installed modern security systems, businesses can prevent such incidents and save themselves from significant financial losses.

While burglaries make up 13.6% of property crimes that put inventory assets at risk and can result in property damage, shoplifting also poses a significant risk during business hours, with small businesses losing between $25,000 and $33,000 per minute to shoplifters.

Benefits of Modern Security Systems

A quality security system offers a range of benefits, including preventing burglaries and shoplifting and identifying employees who steal. It also offers safety and protection from incidents of sexual harassment and workplace violence. In some cases, insurance companies may reduce business insurance premiums for businesses with indoor and outdoor security systems because their risk of theft and property loss is lower. Additionally, in a lawsuit, business owners can use security camera footage to protect themselves from wrongful accusations.

To maximize security, businesses should strategically place security cameras in areas prone to theft and other incidents, such as points of transaction, entrances and exits, the parking lot, and the inventory room. While it’s important to consider which areas need surveillance, it’s important to note that only an experienced installer can provide guidance on the most effective security camera placement.

Invest in better security today

The Tax Cuts and Jobs Act of 2017 has brought significant benefits to businesses looking to invest in security, fire protection, and alarm systems by providing tax incentives that allow them to write off the full cost of such systems as an expense for the tax year they were placed in service, eliminating the capitalization requirement. 

Small businesses can use this law to purchase security cameras, which are essential for protecting their merchandise, employees, and customers from unforeseeable threats. These cameras prevent losses due to burglaries, shoplifting, and false alarms while offering safety and protection. By using the Tax Cuts and Jobs Act to purchase security cameras, small businesses can improve their security preparedness, reduce their risk of financial losses, and maximize their security. Keep in mind it’s important to use an experienced security installation company when selecting products and installing them.

That’s where comes in.

Ask us for a free consultation. Consult with one of our experienced certified technicians today, for free, and you’ll have the opportunity to explain your security goals and budget. Afterward, you’ll have the opportunity for us to come out for a site survey and provide you with suggestions on how to meet your goals and budget.

Security Consultant Johnny

One of our technicians, led by Johnny Beagle, will assist you every step of the way. We will start by giving you a free site survey, which helps us understand the best possible solution for you. Next, one of our technicians will walk you through what kind of cameras would work best for your business.

To contact Johnny and Camera Security Now directly over the phone, call 800-440-1662 or fill out a fast, easy online quote form.

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