[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2107 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2107

 To amend the Internal Revenue Code of 1986 to allow a credit for the 
    cost of installing automatic fire sprinkler systems in certain 
                               buildings.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 12, 1993

 Mr. Mazzoli introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow a credit for the 
    cost of installing automatic fire sprinkler systems in certain 
                               buildings.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CREDIT FOR INSTALLATION OF SPRINKLER SYSTEMS.

    (a) General Rule.--Subpart D of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end thereof the following new 
section:

``SEC. 45A. EXPENDITURES TO INSTALL AUTOMATIC FIRE SPRINKLER SYSTEMS.

    ``(a) General Rule.--For purposes of section 38, the sprinkler 
system installation credit determined under this section for any 
taxable year is 15 percent of the qualified sprinkler system 
expenditures for such taxable year.
    ``(b) Qualified Sprinkler System Expenditures.--For purposes of 
this section--
            ``(1) In general.--The term `qualified sprinkler system 
        expenditure' means any amount which is properly chargeable to 
        capital account in connection with the installation of a 
        qualified sprinkler system in a qualified building but only if 
        such installation is not in connection with the original 
        construction of such building. Any such expenditure shall be 
        taken into account for the taxable year in which it is properly 
        chargeable to capital account.
            ``(2) Qualified sprinkler system.--The term `qualified 
        sprinkler system' means any automatic fire sprinkler system 
        which meets the requirements of National Fire Protection 
        Association Standard Number 13.
            ``(3) Qualified building.--The term `qualified building' 
        means any building if--
                    ``(A) such building has one or more floors which 
                are more than 75 feet above the lowest level of fire 
                department vehicle access and are used in a manner 
                requiring the presence of individuals, and
                    ``(B) the installation of a qualified sprinkler 
                system in such building would be required if such 
                building were being constructed on the date of the 
                installation referred to in paragraph (1).
    ``(c) Denial of Double Benefit.--
            ``(1) Other credits.--No credit shall be allowed under any 
        other provision of this chapter for any expenditure taken into 
        account in determining the amount of the credit under this 
        section.
            ``(2) Basis adjustment.--For purposes of this subtitle, if 
        any expenditure with respect to any property is taken into 
        account under subsection (a), the increase in the basis of such 
        property which would (but for this paragraph) result from such 
        expenditure shall be reduced by the amount of the credit 
        determined under subsection (a) with respect to such 
        expenditure.
    ``(d) Termination.--This section shall not apply to any expenditure 
made on or after January 1, 1999.''
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of such Code is amended by striking ``plus'' at the end of 
paragraph (7), by striking the period at the end of paragraph (8) and 
inserting ``, plus'', and by adding at the end thereof the following 
new paragraph:
            ``(9) the sprinkler system installation credit determined 
        under section 45A(a).''
    (c) Deduction for Unused Credit.--Subsection (c) of section 196 of 
such Code is amended by striking ``and'' at the end of paragraph (4), 
by striking the period at the end of paragraph (5) and inserting ``, 
and'', and by adding at the end thereof the following new paragraph:
            ``(6) the sprinkler system installation credit determined 
        under section 45A(a).''
    (d) Limitation on Carrybacks.--Subsection (d) of section 39 of such 
Code is amended by adding at the end thereof the following new 
paragraph:
            ``(4) No carryback of section 45a credit before 
        enactment.--No portion of the unused business credit for any 
        taxable year which is attributable to the sprinkler system 
        installation credit determined under section 45A(a) may be 
        carried to a taxable year ending before January 1, 1993.''
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end thereof the following new item:

                              ``Sec. 45A. Expenditures to install 
                                        automatic fire-prevention 
                                        sprinkler systems.''
    (f) Effective Date.--The amendments made by this section shall 
apply to expenditures made after December 31, 1992.

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