Bill Summary
This piece of legislation, known as the "High Rise Fire Sprinkler Incentive Act of 2019," aims to amend the Internal Revenue Code of 1986 by classifying certain automatic fire sprinkler system retrofits as 15-year property for the purpose of depreciation. This means that businesses and individuals who install automatic fire sprinkler systems in buildings that meet specific criteria can now claim these systems as depreciable assets for tax purposes. The Act also specifies the applicable depreciation method and provides a definition for "automatic fire sprinkler system retrofit property." The amendments made by this legislation will take effect after the date of its enactment.
Possible Impacts
1. Homeowners or building owners may receive tax incentives for installing automatic fire sprinkler systems, making it more affordable for them to retrofit their existing buildings with this safety feature.
2. Firefighters and emergency responders may benefit from increased safety measures in high-rise buildings with automatic fire sprinkler systems, reducing the risk of injury or death in the event of a fire.
3. Construction companies or contractors may see an increase in demand for their services as building owners rush to comply with the new legislation, potentially leading to job growth and economic benefits.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4685 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 4685
To amend the Internal Revenue Code of 1986 to classify certain
automatic fire sprinkler system retrofits as 15-year property for
purposes of depreciation.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 15, 2019
Mr. Pascrell (for himself and Mr. King of New York) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to classify certain
automatic 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 ``High Rise Fire Sprinkler Incentive
Act of 2019''.
SEC. 2. CLASSIFICATION OF CERTAIN AUTOMATIC 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 (v), by striking the period at the end of clause (vi) and
inserting ``, and'', and by adding at the end the following:
``(vii) any automatic 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:
``(H) Any automatic 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)(vi) the following:
------------------------------------------------------------------------
(E)(vii)................................................... 39
------------------------------------------------------------------------
(d) Definition of Automatic Fire Sprinkler System Retrofit
Property.--Section 168(i) of such Code is amended by adding at the end
the following new paragraph:
``(20) Automatic fire sprinkler system retrofit property.--
The term `automatic fire sprinkler system retrofit property'
means any sprinkler system which--
``(A) meets the standards of National Fire
Protection Association 13 (or any successor benchmark),
and
``(B) is installed in a building which--
``(i) was placed in service before the date
of such installation, and
``(ii) has an occupiable floor more than 75
feet above the lowest level of fire department
vehicle access.''.
(e) Effective Date.--The amendments made by this section shall
apply after the date of enactment of this Act.
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