II 

113TH CONGRESS 

1ST SESSION S. 1163 

To amend the Internal Revenue Code of 1986 to include automated fire 

sprinkler system retrofits as section 179 property and classify certain 

automated fire sprinkler system retrofits as 15-year property for purposes 

of depreciation. 

IN THE SENATE OF THE UNITED STATES 

JUNE 13, 2013 

Mr. CARPER (for himself and Ms. COLLINS) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to include 

automated fire sprinkler system retrofits as section 179 

property and classify certain automated fire sprinkler 

system retrofits as 15-year property for purposes of depreciation. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fire Sprinkler Incen5 tive Act’’. 


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1 SEC. 2. AUTOMATED FIRE SPRINKLER SYSTEM RETROFITS 

2 TREATED AS SECTION 179 PROPERTY. 

3 (a) IN GENERAL.—Subparagraph (B) of section 

4 179(d)(1) of the Internal Revenue Code of 1986 is amend5 ed to read as follows: 

6 ‘‘(B) which is— 

7 ‘‘(i) automated fire sprinkler system 

8 retrofit property (as defined in section 

9 168(i)(20) determined without regard to 

10 subparagraph (A)(ii) thereof), or 

11 ‘‘(ii) section 1245 property (as defined 

12 in section 1245(a)(3)), and’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to property placed in service after 

15 the date of the enactment of this Act. 

16 SEC. 3. CLASSIFICATION OF CERTAIN AUTOMATED FIRE 

17 SPRINKLER SYSTEM RETROFITS. 

18 (a) TREATMENT AS 15-YEAR PROPERTY.—Subpara19 graph (E) of section 168(e)(3) of the Internal Revenue 

20 Code of 1986 is amended by striking ‘‘and’’ at the end 

21 of clause (viii), by striking the period at the end of clause 

22 (ix) and inserting ‘‘, and’’, and by adding at the end the 

23 following: 

24 ‘‘(x) any automated fire sprinkler sys25 tem retrofit property.’’. 


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1 (b) APPLICABLE DEPRECIATION METHOD.—Para2 graph (3) of section 168(b) of the Internal Revenue Code 

3 of 1986 is amended by adding at the end the following 

4 new subparagraph: 

5 ‘‘(J) Any automated fire sprinkler system 

6 retrofit property.’’. 

7 (c) ALTERNATIVE SYSTEM.—The table contained in 

8 section 168(g)(3)(B) of the Internal Revenue Code of 

9 1986 is amended by inserting after the item relating to 

10 subparagraph (E)(ix) the following: 

‘‘(E)(x) ...................................................................................................... 39’’. 

11 (d) DEFINITION OF AUTOMATED FIRE SPRINKLER

12 SYSTEM RETROFIT PROPERTY.—Subsection (i) of section 

13 168 of the Internal Revenue Code of 1986 is amended by 

14 adding at the end the following new paragraph: 

15 ‘‘(20) AUTOMATED FIRE SPRINKLER SYSTEM

16 RETROFIT PROPERTY.—The term ‘automated fire 

17 sprinkler system retrofit property’ means any prop18 erty which comprises a sprinkler system which— 

19 ‘‘(A) is installed in a building or structure 

20 which— 

21 ‘‘(i) was placed in service before the 

22 date on which such sprinkler system is 

23 placed in service, and 

24 ‘‘(ii) has an occupiable story the floor 

25 of which is more than 75 feet above the 


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1 lowest level of fire department vehicle ac2 cess, and 

3 ‘‘(B) is classified under one or more of the 

4 following: 

5 ‘‘(i) National Fire Protection Associa6 tion 13, Installation of Sprinkler Systems. 

7 ‘‘(ii) National Fire Protection Asso8 ciation 13 D, Installation of Sprinkler Sys9 tems in One and Two Family Dwellings 

10 and Manufactured Homes or International 

11 Residential Code Section P2904, Dwelling 

12 Unit Fire Sprinkler Systems. 

13 ‘‘(iii) National Fire Protection Asso14 ciation 13 R, Installation of Sprinkler Sys15 tems in Residential Occupancies up to and 

16 Including Four Stories in Height.’’. 

17 (e) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to property placed in service after 

19 the date of the enactment of this Act. 

Æ 


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