NBFAA supports security system installation tax deduction bill
WASHINGTON--Businesses and independent taxpayers could receive tax reductions by having a security system professionally installed.
The Secure America's Homes and Businesses Act of 2005 goes before Congress this session and would provide up to $5,000 for residential and $50,000 for commercial tax deductions. If passed it would be effective Dec. 31, 2005.
Rep. Steven LaTourette of Ohio introduced the bill to the House as an incentive to meet homeland security measures and crime prevention initiatives.
The National Burglar & Fire Alarm Association endorses the bill.
Similar bills have introduced a tax credit for security devices over the years, John Chwat, director of government relations for the NBFAA, said.
However, this current bill is updated specifically for the types of equipment available today and is for a tax deduction, not credit.
The language of the bill says the security system must be professionally installed, meaning, "residents cannot go to their local hardware store to install an off-the-shelf system," Chwat said
The NBFAA supports the bill's intent because it could influence a business or individual taxpayer to install a security system. In the long run, the bill would have an affect on increased business for the industry.
This fall, the NBFAA submitted a request to the President's Advisory Panel on Federal Tax Reform requesting that in the panel's final recommendations to the White House and Congress they include the tax deduction language for the professional installation of electronic premise security devices, said Merlin Guilbeau, executive director of the NBFAA.
The association asks that industry members also support this bill.
"Now that the act has been introduced, the security industry can contact their congressmen directly to support the consideration," Chwat said.