Sponsors (9)
The bill creates a targeted tax incentive to encourage NFPA 13 sprinkler retrofits in tall residential buildings—improving safety for those residents while providing tax relief to qualifying owners, but it excludes many building owners, modestly reduces federal revenue, and offers less benefit to smaller or shorter-building landlords.
Residents of tall, preexisting residential buildings (occupiable floors >75 ft) may have improved fire safety because the measure encourages installation of NFPA 13-compliant sprinkler systems.
Owners of qualifying tall residential buildings can depreciate sprinkler retrofit costs over 15 years, lowering taxable income and reducing tax liability in the early years after upgrades.
Property owners get clearer, more predictable tax treatment because the bill clarifies the depreciation method and alternative system classification for these retrofits, aiding planning for safety investments.
Owners of many residential buildings are excluded because only buildings with occupiable floors over 75 feet and NFPA 13 compliance qualify, leaving those owners without the tax incentive.
Smaller landlords and owners of shorter or noncompliant buildings may face higher net retrofit costs and thus have less incentive or ability to upgrade fire protection.
Federal tax revenue will modestly decrease because retrofit costs receive accelerated/longer recovery, which could slightly increase deficits or reduce funds available for other spending.
Based on analysis of 2 sections of legislative text.
Introduced January 3, 2025 by Nicole Malliotakis · Last progress January 3, 2025
Amends the federal tax code to let owners of certain automatic fire sprinkler retrofits in existing tall residential buildings use a 15‑year MACRS depreciation class and specified depreciation method. The retrofit must meet NFPA 13 (or successor), be installed in residential property, and be placed into an existing building with an occupiable floor more than 75 feet above the lowest level of fire department vehicle access; the change applies after enactment.