Fire Sprinkler Incentive Bill Proposed In Congress
Fire sprinklers may save more than lives and property. If legislation introduced by two congressmen is approved, property owners who install fire sprinklers would benefit from tax incentives. Under H.R. 1824 (Fire Sprinkler Incentive Act), sprinkler systems would be classified as five-year property for the purpose of depreciation under federal tax codes. That means a system valued at $100,000 could be depreciated at $20,000 a year for five years. Depreciation under the current schedule occurs over 30 years.
The tragic fires that took the lives of 99 people in a Rhode Island nightclub and another 16 people in a Connecticut nursing home have spurred interest in amending the Internal Revenue Code of 1986 to re-classify automatic fire sprinkler systems. Industry groups are now targeting members of the Ways and Means Committee to garner enough votes to bring this legislation out of committee and onto the floor for a vote.
