Title: Fire Sprinkler Incentive Act
Policy area: Taxation

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.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 602 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                 S. 602

 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

                             March 9, 2017

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fire Sprinkler Incentive Act''.

SEC. 2. AUTOMATED FIRE SPRINKLER SYSTEM RETROFITS TREATED AS SECTION 
              179 PROPERTY.

    (a) In General.--Section 179(d)(1)(B) 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)(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 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' means any property 
                which comprises a sprinkler system which--
                            ``(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.
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