Again, 400V 60Hz is a strange beastie. Is there any chance that it was a rewind job rather than 400V 60Hz from the factory?
Some background: an induction motor (I am guessing this is what you have) draws both 'magnetizing current' and 'running current'. Of course the actual current drawn is a composite of these two, so what you see in th composite is a single current with a power factor angle. The greater the magnetizing current or the lower the running current, then the lower the power factor.
Increasing the motor V/Hz will tend to _increase_ the magnetizing current but _decrease_ the running current.
What you are concerned bout is the increase in magnetizing current because if you increase it too much you will let the smoke out of your motor. The issue here is 'saturation'. The motor steel carries magnetic flux and increases the inductance of the motor windings, which reduces the magnetizing current. Once the steel is asked to carry too much flux the inductance of the motor windings drops precipitously and the magnetizing current jumps.
So the question is: how close to saturation is the motor as designed at 400V. If the motor were designed conservatively, then it would probably tolerate the 480V. If it is close to the edge you will let the magic smoke out after a few minutes.
IMHO with a 20% overvoltage you will not see an instantaneous failure, but rather an overheating failure after short period of time. So it might be reasonable to _test_ unloaded operation at 480V and measure what the current is. If the magnetizing current comes low enough then just use the machine at 480V. (I can't give you a precise value of 'low enough', but anything less than rated FLA of the motor would make further exploration reasonable).
If you need 400V, then you have options:
1) A 'buck-boost' transformer taking 492V down to about 410V will cost about $800 (see page 9 (labeled 87) of
https://www.hammondpowersolutions.com/files/HPS_Catalog_BuckBoost_Section2.pdf ) figure the part number and look up the price.
2) A VFD would cost about $2K but would offer potential energy saving benefits. First a VFD can take a 480V input and give you a 400V at 60Hz output. Second you can use it to vary the frequency and thus speed of the motor. A dust collector is moving air, and during times of low load you may be throttling the air flow. You save significant energy if you can open a throttle and then get the reduced air flow with reduced motor speed. If you can drop power consumption by 20% for 50% of time (assuming continuous run) then you pay for the inverter in a single year from the energy savings.
3) A motor repair shop can rewind the motor for 480V operation
4) Depending on how the motor is wired, you might be able to change it over to 200V operation in the terminal box, and then operate from an available 208V supply (if you have such in your facility).
5) You can replace the motor with one rated for 480V 60Hz.
-Jon