Fire Sprinkler Incentive Act

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. Short title This Act may be cited as the Fire Sprinkler Incentive Act 2. Automated fire sprinkler system retrofits treated as section 179 property (a) In general Subparagraph (B) of section 179(d)(1) of the Internal Revenue Code of 1986 is amended to read as follows: (B) which is— (i) automated fire sprinkler system retrofit property (as defined in section 168(i)(20) determined without regard to subparagraph (A)(ii) thereof), or (ii) section 1245 property (as defined in section 1245(a)(3)), and . (b) Effective date The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. 3. Classification of certain automated fire sprinkler system retrofits (a) Treatment as 15-Year property Subparagraph (E) of section 168(e)(3) of the Internal Revenue Code of 1986 is amended by striking and , and (x) any automated fire sprinkler system retrofit property. . (b) Applicable depreciation method Paragraph (3) of section 168(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (J) Any automated fire sprinkler system retrofit property. . (c) Alternative system The table contained in section 168(g)(3)(B) of the Internal Revenue Code of 1986 is amended by inserting after the item relating to subparagraph (E)(ix) the following: (E)(x) 39 . (d) Definition of automated fire sprinkler system retrofit property Subsection (i) of section 168 (20) Automated fire sprinkler system retrofit property The term automated fire sprinkler system retrofit property (A) is installed in a building or structure which— (i) was placed in service before the date on which such sprinkler system is placed in service, and (ii) has an occupiable story the floor of which is more than 75 feet above the lowest level of fire department vehicle access, and (B) is classified under one or more of the following: (i) National Fire Protection Association 13, Installation of Sprinkler Systems. (ii) National Fire Protection Association 13 D, Installation of Sprinkler Systems in One and Two Family Dwellings and Manufactured Homes or International Residential Code Section P2904, Dwelling Unit Fire Sprinkler Systems. (iii) National Fire Protection Association 13 R, Installation of Sprinkler Systems in Residential Occupancies up to and Including Four Stories in Height. . (e) Effective date The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

Summary: Fire Sprinkler Incentive Act - Amends the Internal Revenue Code to allow: (1) 100% expensing in a current taxable year of the cost of automated fire sprinkler system retrofit property, as defined by this Act; and (2) accelerated depreciation (i.e., a 15-year recovery period) of automated fire sprinkler system retrofit property that is installed in a building or structure where the floor of any occupiable story is greater than 75 feet above the lowest level of fire department vehicle access and that has a certain classification by the National Fire Protection Association.