Bill Details
S.504 - 119th Congress
Status
Latest action
2025-02-10 - Read twice and referred to the Committee on Finance.
Introduced Date
2025-02-10
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
View cosponsors (1)
8
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AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would give a tax break for adding automatic fire sprinkler systems in certain tall residential buildings. It changes how these retrofit projects are treated under federal tax law so they can be written off faster over 15 years instead of being depreciated more slowly. The goal is to encourage building owners to upgrade older high-rise housing with sprinkler systems that meet fire safety standards.
- It applies only to sprinkler systems installed as retrofits, not to all new construction.
- The sprinkler system must meet the standards of the National Fire Protection Association 13, or a future replacement standard.
- The building must be used for residential property and must have been in service before the sprinkler system was installed.
- The building must have an occupiable floor more than 75 feet above the lowest level where fire department vehicles can reach.
Official Summaries
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Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 504 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 504
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 SENATE OF THE UNITED STATES
February 10, 2025
Mr. Bennet (for himself and Ms. Collins) 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 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.
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