H.R.173 - High Rise Fire Sprinkler Incentive Act of 2025 (119th Congress)
Summary
H.R. 173, the High Rise Fire Sprinkler Incentive Act of 2025, aims to amend the Internal Revenue Code of 1986. The bill seeks to classify certain automatic fire sprinkler system retrofits in high-rise residential buildings as 15-year property for depreciation purposes. This would incentivize building owners to install these systems by allowing them to depreciate the cost over a shorter period, reducing their tax burden.
Expected Effects
The primary effect of this bill would be to reduce the after-tax cost of installing fire sprinkler systems in older high-rise residential buildings. This could lead to increased installation rates of these systems. Ultimately, this may improve fire safety in these buildings.
Potential Benefits
- Increased Fire Safety: Encourages installation of fire sprinkler systems, reducing fire-related deaths and injuries.
- Reduced Property Damage: Sprinkler systems can quickly suppress fires, minimizing damage to buildings and personal property.
- Economic Stimulus: Creates demand for sprinkler system installation, benefiting manufacturers and contractors.
- Potential Insurance Savings: Building owners may receive lower insurance premiums due to the increased fire safety.
- Modernization of Older Buildings: Incentivizes upgrades to older residential high-rises, improving their overall safety and value.
Potential Disadvantages
- Potential Tax Revenue Loss: The accelerated depreciation could reduce tax revenue for the government.
- Complexity for Building Owners: Navigating the tax code changes and depreciation rules could be challenging for some building owners.
- Cost Shifting: The tax benefits may disproportionately benefit wealthier building owners.
- Limited Scope: The bill only applies to high-rise residential buildings, potentially neglecting other types of structures.
- Potential for Abuse: There could be instances of fraudulent claims or improper classification of properties to take advantage of the tax benefits.
Constitutional Alignment
This bill appears to align with the Constitution, specifically the general welfare clause. By incentivizing fire safety measures, the bill promotes the safety and well-being of residents in high-rise buildings. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).