| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 504 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to classify certain automatic |
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| 6 | 6 | | fire sprinkler system retrofits as 15-year property for purposes of depreciation. |
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| 7 | 7 | | IN THE SENATE OF THE UNITED STATES |
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| 8 | 8 | | FEBRUARY10, 2025 |
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| 9 | 9 | | Mr. B |
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| 10 | 10 | | ENNET(for himself and Ms. COLLINS) introduced the following bill; |
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| 11 | 11 | | which was read twice and referred to the Committee on Finance |
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| 12 | 12 | | A BILL |
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| 13 | 13 | | To amend the Internal Revenue Code of 1986 to classify |
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| 14 | 14 | | certain automatic fire sprinkler system retrofits as 15- |
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| 15 | 15 | | year property for purposes of depreciation. |
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| 16 | 16 | | Be it enacted by the Senate and House of Representa-1 |
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| 17 | 17 | | tives of the United States of America in Congress assembled, 2 |
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| 18 | 18 | | SECTION 1. SHORT TITLE. 3 |
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| 19 | 19 | | This Act may be cited as the ‘‘High Rise Fire Sprin-4 |
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| 20 | 20 | | kler Incentive Act of 2025’’. 5 |
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| 21 | 21 | | SEC. 2. CLASSIFICATION OF CERTAIN AUTOMATIC FIRE 6 |
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| 22 | 22 | | SPRINKLER SYSTEM RETROFITS. 7 |
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| 23 | 23 | | (a) T |
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| 24 | 24 | | REATMENT AS 15-YEARPROPERTY.—Section 8 |
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| 25 | 25 | | 168(e)(3)(E) of the Internal Revenue Code of 1986 is 9 |
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| 26 | 26 | | amended by striking ‘‘and’’ at the end of clause (vi), by 10 |
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| 27 | 27 | | VerDate Sep 11 2014 00:20 Mar 07, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S504.IS S504 |
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| 28 | 28 | | ssavage on LAPJG3WLY3PROD with BILLS 2 |
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| 29 | 29 | | •S 504 IS |
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| 30 | 30 | | striking the period at the end of clause (vii) and inserting 1 |
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| 31 | 31 | | ‘‘, and’’, and by adding at the end the following: 2 |
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| 32 | 32 | | ‘‘(viii) any automatic fire sprinkler 3 |
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| 33 | 33 | | system retrofit property.’’. 4 |
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| 34 | 34 | | (b) A |
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| 35 | 35 | | PPLICABLEDEPRECIATIONMETHOD.—Section 5 |
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| 36 | 36 | | 168(b)(3) of such Code is amended by adding at the end 6 |
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| 37 | 37 | | the following new subparagraph: 7 |
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| 38 | 38 | | ‘‘(H) Any automatic fire sprinkler system 8 |
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| 39 | 39 | | retrofit property.’’. 9 |
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| 40 | 40 | | (c) A |
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| 41 | 41 | | LTERNATIVESYSTEM.—The table contained in 10 |
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| 42 | 42 | | section 168(g)(3)(B) of such Code is amended by inserting 11 |
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| 43 | 43 | | after the item relating to subparagraph (E)(vii) the fol-12 |
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| 44 | 44 | | lowing: 13 |
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| 45 | 45 | | (E)(viii) ........................................................................................... 39 |
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| 46 | 46 | | (d) DEFINITION OFAUTOMATICFIRESPRINKLER 14 |
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| 47 | 47 | | S |
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| 48 | 48 | | YSTEMRETROFITPROPERTY.—Section 168(i) of such 15 |
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| 49 | 49 | | Code is amended by adding at the end the following new 16 |
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| 50 | 50 | | paragraph: 17 |
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| 51 | 51 | | ‘‘(20) A |
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| 52 | 52 | | UTOMATIC FIRE SPRINKLER SYSTEM 18 |
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| 53 | 53 | | RETROFIT PROPERTY .—The term ‘automatic fire 19 |
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| 54 | 54 | | sprinkler system retrofit property’ means any sprin-20 |
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| 55 | 55 | | kler system which— 21 |
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| 56 | 56 | | ‘‘(A) meets the standards of National Fire 22 |
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| 57 | 57 | | Protection Association 13 (or any successor 23 |
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| 58 | 58 | | benchmark), 24 |
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| 59 | 59 | | VerDate Sep 11 2014 00:20 Mar 07, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S504.IS S504 |
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| 60 | 60 | | ssavage on LAPJG3WLY3PROD with BILLS 3 |
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| 61 | 61 | | •S 504 IS |
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| 62 | 62 | | ‘‘(B) is installed for use in residential 1 |
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| 63 | 63 | | property, and 2 |
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| 64 | 64 | | ‘‘(C) is installed in a building which— 3 |
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| 65 | 65 | | ‘‘(i) was placed in service before the 4 |
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| 66 | 66 | | date of such installation, and 5 |
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| 67 | 67 | | ‘‘(ii) has an occupiable floor more 6 |
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| 68 | 68 | | than 75 feet above the lowest level of fire 7 |
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| 69 | 69 | | department vehicle access.’’. 8 |
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| 70 | 70 | | (e) E |
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| 71 | 71 | | FFECTIVEDATE.—The amendments made by 9 |
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| 72 | 72 | | this section shall apply after the date of enactment of this 10 |
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| 73 | 73 | | Act. 11 |
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| 74 | 74 | | Æ |
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| 75 | 75 | | VerDate Sep 11 2014 00:20 Mar 07, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S504.IS S504 |
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| 76 | 76 | | ssavage on LAPJG3WLY3PROD with BILLS |
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