II 

114TH CONGRESS 

1ST SESSION S. 2068 

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 

SEPTEMBER 22, 2015 

Ms. COLLINS (for herself and Mr. CARPER) 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.—Section 179(d)(1)(B) of the Inter4 nal Revenue Code of 1986 is amended to read as follows: 

5 ‘‘(B) which is— 

6 ‘‘(i) automated fire sprinkler system 

7 retrofit property (as defined in section 

8 168(i)(20) determined without regard to 

9 subparagraph (A)(i)(II) thereof), or 

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

11 in section 1245(a)(3)), and’’. 

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

13 this section shall apply to property placed in service after 

14 the date of the enactment of this Act. 

15 SEC. 3. CLASSIFICATION OF CERTAIN AUTOMATED FIRE 

16 SPRINKLER SYSTEM RETROFITS. 

17 (a) TREATMENT AS 15-YEAR PROPERTY.—Section 

18 168(e)(3)(E) of the Internal Revenue Code of 1986 is 

19 amended by striking ‘‘and’’ at the end of clause (viii), by 

20 striking the period at the end of clause (ix) and inserting 

21 ‘‘, and’’, and by adding at the end the following: 

22 ‘‘(x) any automated fire sprinkler sys23 tem retrofit property.’’. 

24 (b) APPLICABLE DEPRECIATION METHOD.—Section 

25 168(b)(3) of such Code is amended by adding at the end 

26 the following new subparagraph: 


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1 ‘‘(J) Any automated fire sprinkler system 

2 retrofit property.’’. 

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

4 section 168(g)(3)(B) of such Code is amended by inserting 

5 after the item relating to subparagraph (E)(ix) the fol6 lowing: 

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

7 (d) DEFINITION OF AUTOMATED FIRE SPRINKLER

8 SYSTEM RETROFIT PROPERTY.—Section 168(i) of such 

9 Code is amended by adding at the end the following new 

10 paragraph: 

11 ‘‘(20) AUTOMATED FIRE SPRINKLER SYSTEM

12 RETROFIT PROPERTY.— 

13 ‘‘(A) IN GENERAL.—The term ‘automated 

14 fire sprinkler system retrofit property’ means 

15 any property which comprises a sprinkler sys16 tem which— 

17 ‘‘(i) is installed in a building or struc18 ture which— 

19 ‘‘(I) was placed in service before 

20 the date on which such sprinkler sys21 tem is placed in service, and 

22 ‘‘(II) has an occupiable story the 

23 floor of which is more than 75 feet 

24 above the lowest level of fire depart25 ment vehicle access, and 


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1 ‘‘(ii) is classified under one or more of 

2 the following: 

3 ‘‘(I) National Fire Protection As4 sociation 13, Installation of Sprinkler 

5 Systems. 

6 ‘‘(II) National Fire Protection 

7 Association 13 D, Installation of 

8 Sprinkler Systems in One and Two 

9 Family Dwellings and Manufactured 

10 Homes or International Residential 

11 Code Section P2904, Dwelling Unit 

12 Fire Sprinkler Systems. 

13 ‘‘(III) National Fire Protection 

14 Association 13 R, Installation of 

15 Sprinkler Systems in Residential Oc16 cupancies up to and Including Four 

17 Stories in Height. 

18 ‘‘(B) EXCEPTION FOR CERTAIN INSTALLA19 TIONS REQUIRED BY LAW.—Such term shall not 

20 include any sprinkler system the installation of 

21 which is required by State or local law by rea22 son of the degree of additions or improvements 

23 made to such building or structure.’’. 


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

2 this section shall apply to property placed in service after 

3 the date of the enactment of this Act. 

Æ 


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