SEC. 2. AUTOMATED FIRE SPRINKLER SYSTEM RETROFITS 
TREATED AS SECTION 179 PROPERTY. 
(a) IN GENERAL.—Section 179(d)(1)(B) of the Inter-
nal 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)(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. 
SEC. 3. CLASSIFICATION OF CERTAIN AUTOMATED FIRE 
SPRINKLER SYSTEM RETROFITS. 
(a) TREATMENT AS 15-YEAR PROPERTY.—Section 
168(e)(3)(E) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of clause (viii), by 
striking the period at the end of clause (ix) and inserting 
‘‘, and’’, and by adding at the end the following: 
‘‘(x) any automated fire sprinkler sys-
tem retrofit property.’’. 
(b) APPLICABLE DEPRECIATION METHOD.—Section 
168(b)(3) of such Code is amended by adding at the end 
the following new subparagraph: 
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‘‘(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 fol-
lowing: 
‘‘(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’ means 
any property which comprises a sprinkler sys-
tem which— 
‘‘(i) is installed in a building or struc-
ture which— 
‘‘(I) was placed in service before 
the date on which such sprinkler sys-
tem 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 depart-
ment vehicle access, and 
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‘‘(ii) is classified under one or more of 
the following: 
‘‘(I) National Fire Protection As-
sociation 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 Oc-
cupancies up to and Including Four 
Stories in Height. 
‘‘(B) EXCEPTION FOR CERTAIN INSTALLA-
TIONS REQUIRED BY LAW.—Such term shall not 
include any sprinkler system the installation of 
which is required by State or local law by rea-
son of the degree of additions or improvements 
made to such building or structure.’’. 
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(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. 
Æ 
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