Sponsors (9)
The bill gives faster, clearer tax relief to owners of tall residential buildings that retrofit NFPA‑13 sprinklers, but it narrowly limits who benefits and modestly lowers federal tax revenue.
Owners of qualifying residential high‑rise buildings (occupiable floors >75 ft) can recover the cost of NFPA‑13 sprinkler retrofits faster through 15‑year depreciation, lowering taxable income in the early years and reducing near‑term after‑tax retrofit costs.
The bill mandates straight‑line depreciation and defines eligible systems (NFPA‑13, residential high‑rise), providing clearer, more predictable tax treatment that simplifies planning and IRS compliance for affected taxpayers and state tax administrators.
Homeowners and owners of most shorter or small multiunit residential buildings are excluded by the >75 ft occupiable floor threshold, so the benefit is narrowly targeted and leaves many property owners without assistance.
Accelerating depreciation for these retrofits reduces federal tax receipts modestly, which could slightly increase the deficit or reduce funding available for other federal programs.
Based on analysis of 2 sections of legislative text.
Establishes a 15‑year recovery period and requires straight‑line depreciation for NFPA 13‑standard sprinkler retrofits in qualifying tall residential buildings.
Introduced January 3, 2025 by Nicole Malliotakis · Last progress January 3, 2025
Creates a new 15‑year tax depreciation class and requires straight‑line depreciation for automatic fire sprinkler system retrofit property installed in tall residential buildings. The change applies to NFPA 13‑standard (or successor) sprinkler retrofits in residential buildings that have an occupiable floor more than 75 feet above the lowest level of fire‑department vehicle access and takes effect after enactment.