High Rise Fire Sprinkler Incentive Act of 2025

The High Rise Fire Sprinkler Incentive Act of 2025 aims to improve fire safety in older residential high-rise buildings by offering a financial incentive for owners to install modern sprinkler systems. Under current federal tax law, the cost of installing these systems is typically recovered over a 39-year depreciation period, which can make the upgrades financially difficult for many property owners. This bill proposes to shorten that timeframe to 15 years, allowing owners to write off the costs much faster and effectively lowering the after-tax price of these safety improvements.

To qualify for the incentive, the building must be a residential structure with at least one floor located more than 75 feet above the lowest level of fire department vehicle access. Additionally, the sprinkler systems must meet specific national safety standards and be installed as a retrofit in buildings that were originally constructed without them. By encouraging these upgrades, the bill seeks to protect residents and first responders from the unique dangers of high-rise fires, which often involve older construction materials that burn more quickly than modern alternatives.