The UA supports updating the tax code for fire sprinkler systems by decreasing the depreciation schedule for residential and commercial buildings. Modernizing the code will guarantee the safety of America’s families, benefit property owners while creating substantial numbers of construction and manufacturing jobs for our members.
THE FIRE SPRINKLER INCENTIVE ACT
With the Fire Sprinkler Incentive Act (FSIA) recently being reintroduced in the 114th Congress, the UA is actively working to help passage of this important piece of legislation. FSIA will ensure the safety of America’s families and create jobs for the construction industry. FSIA will also benefit property owners by providing tax incentives to install and retrofit buildings with fire sprinkler systems by classifying them as five-year depreciable property. Currently, sprinkler systems in commercial buildings have a 39 years depreciation schedule and 27.5 years for residential structures. The FSIA, in previous Congress’, gained broad bipartisan support.
Saving Lives & Reducing Property Damage
• In 2008, more than 3,320 Americans were killed by fires. The FSIA would reduce the incidents of fire-related deaths.
• The National Fire Protection Association has no record of a fire ever killing more than two people in a building with a properly functioning fire sprinkler system installed.
• The National Fire Incident Reporting System estimates that civilian deaths can be reduced on average by 84 percent when property has operating sprinklers.
• Passage of the FSIA would spur economic activity and create jobs across the fire sprinkler industry which has been devastated by the current recession.
• The National Fire Sprinkler Association estimates that the passage of the FSIA would create 9,800 jobs across the country.
• Job creation would occur across industry sectors including plumbers, pipe fitters, sprinkler installers, electricians and more.
Helping Property Owners
• All property owners can expect 5-15% lower insurance premiums while also gaining tax incentives by installing or retrofitting fire sprinkler systems.
• More than 3,600 firefighters have died in the line of duty since 1977; thousands more annually suffer disabling injuries and incur lost time at the expense to taxpayers. Passage of the Fire Sprinkler Incentive Act will allow more buildings to be protected and reduce the opportunities for firefighters to be exposed to these dangers.