H.R. 173

119th CONGRESS 1st Session

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 HOUSE OF REPRESENTATIVES · January 3, 2025 · Sponsor: Ms. Malliotakis · Committee: Committee on Ways and Means

Table of contents

• H.R. 173
  • SEC. 1. Short title
  • SEC. 2. Classification of certain automatic fire sprinkler system retrofits

SEC. 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
  • of the Internal Revenue Code of 1986 is amended by striking 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: Section 168(e)(3)(E)
    • (viii) any automatic fire sprinkler system retrofit property.
• (b) Applicable depreciation method
  • Any automatic fire sprinkler system retrofit property.
  • Section 168(b)(3) of such Code is amended by adding at the end the following new subparagraph:
• (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:
• (d) Definition of automatic fire sprinkler system retrofit property
  • (20) Automatic fire sprinkler system retrofit property
    • The term automatic fire sprinkler system retrofit property means any sprinkler system which—
      • meets the standards of National Fire Protection Association 13 (or any successor benchmark),
      • is installed for use in residential property, and
      • 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.
  • Section 168(i) of such Code is amended by adding at the end the following new paragraph:
• (e) Effective date
  • The amendments made by this section shall apply after the date of enactment of this Act.