Building owners would be encouraged to invest in fire safety upgrades under bipartisan, bicameral legislation introduced by U.S. Sen. Susan Collins (R-ME) and U.S. Rep. Tom Reed (R-NY) last week.
The Fire Sprinkler Incentive Act would enhance tax incentives for small businesses and owners of commercial office space, nursing homes and other buildings to install fire sprinkler retrofits.
“The annual cost of fires is enormous, killing thousands of Americans and causing billions of dollars in property damage,” Collins, the chair of the Congressional Fire Services Caucus, said. “When properly installed, state-of-the-art sprinkler systems can help avert tragedies by controlling or extinguishing fires, protecting firefighters and saving countless lives. Our bill would make it easier for small businesses and commercial building owners to invest in these critical fire safety upgrades.”
Building codes require fire sprinklers in new construction, but tens of thousands of commercial structures were built before sprinklers were required. Owners of these buildings are currently able to depreciate fire sprinkler retrofit costs over a 39-year period for commercial buildings and over a 27-year period for residential buildings.
The Fire Sprinkler Incentive Act, which Collins introduced in the Senate with U.S. Sen. Tom Carper (D-DE) and Reed introduced in the House with U.S. Rep. Jim Langevin (D-RI), would reclassify sprinkler retrofits as 15-year depreciable property, allowing owners to recoup costs more quickly.
“We just introduced a bill that will help make people safer by providing tax incentives for improvements to fire sprinkler systems in existing buildings,” Reed said. “Rep. Langevin and I have co-sponsored this bill which has received the support of firefighters and unions alike because it modernizes buildings and improves safety while increasing employment and manufacturing, which are all good for the community. We care about protecting and improving the everyday lives of people.”
The legislation would also permit some small businesses to deduct the costs of fire system upgrades immediately under section 179 of the tax code.