FIRE SPRINKLER INCENTIVE ACT INTRODUCED IN THE SENATE

http://www.govtrack.us/congress/bill.xpd?bill=s111-2947
On January 22nd, Senators Tom Carper (DE) and Susan Collins (ME) introduced the Fire Sprinkler Incentive Act in the Senate.  This bill would amend the Internal Revenue Code of 1986 to classify automatic fire sprinkler systems as 5-year property for purposes of depreciation.  The bill, S. 2947, was referred to the Senate Finance Committee for consideration.  Both Senator Carper and Senator Collins are co-chairs of the Congressional Fire Services Caucus. 
"Senator Carper and Senator Collins are to be commended for introducing the Fire Sprinkler Incentive Act in the Senate," said CFSI Executive Director Bill Webb.  "Passage of this legislation can have a significant impact in reducing the number of deaths and injuries caused by fire."
On February 25, 2009, Congressman Jim Langevin (RI-2) introduced similar legislation, H.R. 1194, in the House of Representatives.  The House version currently has 111 co-sponsors and was referred to the House Committee on Ways and Means.

111th CONGRESS

2d Session

S. 2947

To amend the Internal Revenue Code of 1986 to classify automatic fire sprinkler systems as 5-year property for purposes of depreciation.

IN THE SENATE OF THE UNITED STATES

January 22, 2010

Mr. CARPER (for himself and Ms. COLLINS) introduced the following bill; which was read twice and referred to the Committee on Finance

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A BILL

To amend the Internal Revenue Code of 1986 to classify automatic fire sprinkler systems as 5-year property for purposes of depreciation.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Fire Sprinkler Incentive Act of 2010’.

SEC. 2. CLASSIFICATION OF AUTOMATIC FIRE SPRINKLER SYSTEMS.

(a) In General- Subparagraph (B) of section 168(e)(3) of the Internal Revenue Code of 1986 (relating to 5-year property) is amended by striking ‘and’ 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:

‘(viii) any automated fire sprinkler system placed in service after April 11, 2003, in a building or structure which was placed in service before such date.’.

(b) Alternative System- The table contained in section 168(g)(3)(B) of the Internal Revenue Code of 1986 is amended by inserting after the item relating to subparagraph (B)(vii) the following:

7’.

(c) Definition of Automatic Fire Sprinkler System- Subsection (i) of section 168 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

‘(20) AUTOMATED FIRE SPRINKLER SYSTEM- The term ‘automated fire sprinkler system’ means those sprinkler systems classified under one or more of the following publications of the National Fire Protection Association--

‘(A) NFPA 13, Installation of Sprinkler Systems,

‘(B) NFPA 13 D, Installation of Sprinkler Systems in One and Two Family Dwellings and Manufactured Homes, and

‘(C) NFPA 13 R, Installation of Sprinkler Systems in Residential Occupancies up to and Including Four Stories in Height.’.

(d) Effective Date- The amendments made by this section shall apply to property placed in service after April 11, 2003.

(e) Waiver of Limitations- If refund or credit of any overpayment of tax resulting from the amendments made by this section is prevented at any time before the close of the 1-year period beginning on the date of the enactment of this Act by the operation of any law or rule of law (including res judicata), such refund or credit may nevertheless be made or allowed if claim therefor is filed before the close of such period.