High Rise Fire Sprinkler Incentive Act of 2025

The High Rise Fire Sprinkler Incentive Act would amend the tax code to encourage property owners to retrofit older high-rise residential buildings with automatic fire sprinkler systems. Currently, the tax code treats fire sprinkler installations similarly to plumbing and requires owners to depreciate the costs over 39 years. This bill would reclassify fire sprinkler system retrofits as 15-year property for tax depreciation purposes, significantly reducing the time period over which owners can recover their investment costs.

The bill would apply to fire sprinkler systems installed in residential buildings that were constructed before the installation and have at least one occupiable floor more than 75 feet above the level where fire department vehicles can access the building. The systems must meet National Fire Protection Association standards. By making sprinkler installations more financially attractive through faster cost recovery, the legislation aims to incentivize building owners to modernize their properties with modern fire safety systems, potentially reducing fire deaths and property damage in high-rise residential structures.