S 1035

112th CONGRESS
1st Session

S. 1035

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

IN THE SENATE OF THE UNITED STATES

May 19, 2011

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


A BILL

To amend the Internal Revenue Code of 1986 to include automated fire sprinkler systems as section 179 property and classify certain automated fire sprinkler systems as 15-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 2011'.

SEC. 2. AUTOMATED FIRE SPRINKLER SYSTEMS TREATED AS SECTION 179 PROPERTY.

    (a) In General- Section 179 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

    `(g) Special Rules for Automated Fire Sprinkler Systems-

      `(1) IN GENERAL- If a taxpayer elects the application of this subsection for any taxable year, the term `section 179 property' shall include any automated fire sprinkler system.

      `(2) AUTOMATED FIRE SPRINKLER SYSTEM- For purposes of this subsection, the term `automated fire sprinkler system' means those sprinkler systems classified under one or more of the following:

        `(A) National Fire Protection Association 13, Installation of Sprinkler Systems.

        `(B) 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.

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

    (b) Effective Date- The amendments made by this section shall apply to property placed in service after December 31, 2010.

SEC. 3. CLASSIFICATION OF AUTOMATIC FIRE SPRINKLER SYSTEMS.

    (a) In General- Subparagraph (E) of section 168(e)(3) 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 specified automated fire sprinkler system.'.

    (b) Applicable Depreciation Method- Paragraph (3) of section 168(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

        `(J) Any specified automated fire sprinkler system.'.

    (c) 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 (E)(ix) the following:

39'.

    (d) 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) SPECIFIED AUTOMATED FIRE SPRINKLER SYSTEM- For purposes of this subsection, the term `specified automated fire sprinkler system' means any automated sprinkler system (as defined in section 179(g)(2)) which is installed in a building where the floor of any occupiable story is greater than 75 feet above the lowest level of fire department vehicle access.'.

    (e) Effective Date- The amendments made by this section shall apply to property placed in service after December 31, 2010.

END