Fire Sprinkler Incentive Act

Fire Sprinkler Incentive Act - 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 Act; and (2) accelerated depreciation (i.e., a 15-year recovery period) of automated fire sprinkler system retrofit property that is installed in a building or structure where the floor of any occupiable story is greater than 75 feet above the lowest level of fire department vehicle access and that has a certain classification by the National Fire Protection Association.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5622 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5622

 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 HOUSE OF REPRESENTATIVES

                           September 18, 2014

  Mr. Langevin (for himself, Mr. Pascrell, Mr. King of New York, Ms. 
    Kuster, Mr. Fitzpatrick, Mr. Cooper, Ms. Norton, Mr. Larson of 
  Connecticut, Mr. Van Hollen, Mr. Holt, Mr. Grijalva, Mr. Johnson of 
Ohio, and Mr. Israel) 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 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)(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.--
        The term `automated fire sprinkler system retrofit property' 
        means any property which comprises a sprinkler system which--
                    ``(A) 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
                    ``(B) 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.''.
    (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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