Bill Details
HR.173 - 119th Congress
Status
Latest action
2025-01-03 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-01-03
Policy Area
Taxation
Committees
View committees (1)
Cosponsors
View cosponsors (8)
50
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill changes tax rules so building owners can recover the cost of installing automatic fire sprinkler retrofits faster. It says those sprinkler retrofit costs for certain tall residential buildings should be treated as 15‑year property for depreciation, which generally lets owners deduct the cost more quickly than under longer schedules. The bill defines which retrofit projects qualify, updates the tax code’s depreciation tables to show an alternative recovery period, and takes effect after the law is enacted.
- The cost of qualifying automatic fire sprinkler retrofits is classified as 15‑year property for depreciation, allowing faster cost recovery for owners.
- To qualify, the sprinkler system must meet National Fire Protection Association 13 (or its successor), be installed in residential property, be a retrofit to a building already in service, and the building must have an occupiable floor more than 75 feet above the lowest level accessible to fire department vehicles.
- The bill also adds an alternative depreciation entry showing a 39‑year recovery period for these systems under the alternative depreciation rules, meaning a longer recovery option exists under that method.
- The rule applies after the bill becomes law—projects begun after enactment would be eligible under these changes.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 173 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 173
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
January 3, 2025
Ms. Malliotakis 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 2025''.
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 (vi), by striking the period at the end of clause (vii) and
inserting ``, and'', and by adding at the end the following:
``(viii) 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)(vii) the following:
------------------------------------------------------------------------
``(E)(viii)................................................ 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),
``(B) is installed for use in residential property,
and
``(C) 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.
<all>