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 Section 179(d)(1)(B) (B) which is— (i) automated fire sprinkler system retrofit property (as defined in section 168(i)(20) determined without regard to subparagraph (A)(i)(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 Section 168(e)(3)(E) and , and (x) any automated fire sprinkler system retrofit property. . (b) Applicable depreciation method Section 168(b)(3) of such Code 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 such Code 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 Section 168(i) of such Code is amended by adding at the end the following new paragraph: (20) Automated fire sprinkler system retrofit property (A) In general The term automated fire sprinkler system retrofit property (i) 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 (ii) 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. (B) Exception for certain installations required by law Such term shall not include any sprinkler system the installation of which is required by State or local law by reason of the degree of additions or improvements made to such building or structure. . (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 This bill 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 bill; and (2) accelerated depreciation (i.e., a 15-year recovery period) of automated fire sprinkler system retrofit property that has a certain classification by the National Fire Protection Association and is installed in a building or structure that was placed in service before the sprinkler system and has an occupiable story that is greater than 75 feet above the lowest level of fire department vehicle access. "Automated fire sprinkler system retrofit property" does not include any sprinkler system required to be installed under state or local law due to the degree of additions or improvements made to a building or structure.