H.R. 1481 – Fire Sprinkler Incentive Act

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Updated April 15, 2026 at 1:29 PM UTC

The Fire Sprinkler Incentive Act changes the tax code so that owners who add automated fire‑sprinkler systems to existing buildings can treat those upgrades as Section 179 property and as 15‑year depreciation property. This lets them expense the cost more quickly, reducing their taxable income. The bill applies to retrofits placed in service after the law is enacted and affects owners of commercial or residential structures that install qualifying sprinkler systems.

Key Provisions

Amends Section 179 to allow automated fire‑sprinkler retrofits to be deducted as Section 179 property, giving owners an immediate expense deduction.
Adds automated fire‑sprinkler retrofits to the list of 15‑year property for depreciation, providing a faster depreciation schedule.
Creates a definition for “automated fire sprinkler system retrofit property,” covering systems installed in buildings that were already in service and meet specific height and code standards.
Excludes from the definition any sprinkler system required by state or local law because of building additions or improvements.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

March 9, 2017

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HouseIntro Referral

Introduced in House

March 9, 2017

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

March 9, 2017

Bill Text

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Introduced in HouseIssued March 9, 2017

I

115th CONGRESS

1st Session

H. R. 1481

IN THE HOUSE OF REPRESENTATIVES

March 9, 2017

Mr. Reed (for himself and Mr. Langevin) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to include automated fire sprinkler system retrofits as section 179 property and classify certain automated fire sprinkler system retrofits as 15-year property for purposes of depreciation.

1.

Short title

This Act may be cited as the Fire Sprinkler Incentive Act.

2.

Automated fire sprinkler system retrofits treated as section 179 property

(a)

In general

Section 179(d)(1)(B) of the Internal Revenue Code of 1986 is amended to read as follows:

(B)

which is—

(i)

automated fire sprinkler system retrofit property (as defined in section 168(i)(20) determined without regard to subparagraph (A)(i)(II) thereof), or

(ii)

section 1245 property (as defined in section 1245(a)(3)), and

.

(b)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

3.

Classification of certain automated fire sprinkler system retrofits

(a)

Treatment as 15-Year property

Section 168(e)(3)(E) of the Internal Revenue Code of 1986 is amended by striking and at the end of clause (viii), by striking the period at the end of clause (ix) and inserting , and , and by adding at the end the following:

(x)

any automated fire sprinkler system retrofit property.

.

(b)

Applicable depreciation method

Section 168(b)(3) of such Code is amended by adding at the end the following new subparagraph:

(J)

Any automated fire sprinkler system retrofit property.

.

(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)(ix) the following:

(E)(x)39

.

(d)

Definition of automated fire sprinkler system retrofit property

Section 168(i) of such Code is amended by adding at the end the following new paragraph:

(20)

Automated fire sprinkler system retrofit property

(A)

In general

The term automated fire sprinkler system retrofit property means any property which comprises a sprinkler system which—

(i)

is installed in a building or structure which—

(I)

was placed in service before the date on which such sprinkler system is placed in service, and

(II)

has an occupiable story the floor of which is more than 75 feet above the lowest level of fire department vehicle access, and

(ii)

is classified under one or more of the following:

(I)

National Fire Protection Association 13, Installation of Sprinkler Systems.

(II)

National Fire Protection Association 13 D, Installation of Sprinkler Systems in One and Two Family Dwellings and Manufactured Homes or International Residential Code Section P2904, Dwelling Unit Fire Sprinkler Systems.

(III)

National Fire Protection Association 13 R, Installation of Sprinkler Systems in Residential Occupancies up to and Including Four Stories in Height.

(B)

Exception for certain installations required by law

Such term shall not include any sprinkler system the installation of which is required by State or local law by reason of the degree of additions or improvements made to such building or structure.

.

(e)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.