[Congressional Record Volume 159, Number 113 (Thursday, August 1, 2013)]
[Senate]
[Pages S6214-S6215]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LEAHY:
  S. 1421. A bill to amend the Internal Revenue Code of 1986 to provide 
a refundable tax credit for the installation of sprinklers and 
elevators in historic structures; to the Committee on Finance.
  Mr. LEAHY. Mr. President, each year fire destroys hundreds of 
vulnerable historic buildings that serve as the anchors of America's 
vibrant villages and downtowns. These fires leave gaping holes in Main 
Streets all across the country. All have destroyed property. Some have 
taken lives. And many could have been prevented by sprinkler systems. 
This upfront but costly investment could have helped prevent the loss 
of life, reduced property damage, and decreased federal expenditures on 
rebuilding efforts after these fires.
  To prevent fires from destroying buildings in historic downtowns and 
to preserve access to upper-story office, retail, and housing space in 
these buildings, I am introducing legislation today--the Historic 
Downtown Preservation and Access Act--that will create a 50 percent 
refundable tax credit, capped at $50,000, for the installation of fire 
sprinklers and elevators in older, multi-use buildings in historic 
downtowns.
  Since 2000, Vermont has had more than a dozen significant downtown 
fires causing tens of millions of dollars of damage and taking at least 
three lives. The original owners of at least 8 of these buildings were 
unable to rebuild--leaving the critical task of rebuilding both the 
building and the community to nonprofit entities that rely primarily on 
Federal funds. These 8 projects cost the Federal Government $20 million 
in Low Income Housing Tax Credits, Community Development Block-Grant 
building, and HOME funding. Only one of these 8 buildings had a 
sprinkler system. If the building owners had installed sprinklers in 
all eight buildings using the credit created by this legislation, the 
Federal Government may have saved $19.6 million, dozens of Vermonters 
would still be in their homes, more than a dozen businesses would have 
been sparred, and at least three Vermonters might still be alive today.
  According to the National Fire Sprinkler Association, housing units 
with sprinklers receive 69 percent less property damage during a fire 
than units without sprinklers, the death rate per fire in a home with a 
sprinkler is 83 percent less than in a home without a sprinkler, and 
firefighters are 65 percent less likely to be injured in a fire where a 
sprinkler is present than in a fire where a sprinkler is not present.
  This legislation also incentivizes the installation of elevators 
because too often upper story office, retail, and housing space in 
historic downtown buildings goes unused due to accessibility 
requirements.
  Financial cost-benefit modeling and existing federal incentives for 
rehabbing an historic building with sprinklers or an elevator fail to 
adequately incentivize building owners to install these assets. For 
instance, the Qualified Rehabilitation Tax Credit requires significant 
rehabilitation to a building equal to the value of the building before 
renovation in order to claim the credit. Asset depreciation tax 
benefits take decades for a building owner to offset the cost of a 
sprinkler or elevator system, and building owners who make no profit or 
minimal profit have no use for existing tax credits.
  The new refundable tax credit I am introducing today--modeled after 
the State of Vermont's highly successful

[[Page S6215]]

downtown historic tax credit--would allow private entities with little 
tax liability and nonprofits alike to install these important property- 
and life-saving devices in historic buildings.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1421

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Historic Downtown 
     Preservation and Access Act''.

     SEC. 2. CREDIT FOR INSTALLATION OF SPRINKLERS AND ELEVATORS 
                   IN HISTORIC BUILDINGS.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     inserting after section 36B the following new section:

     ``SEC. 36C. HISTORIC BUILDING EXPENSES.

       ``(a) In General.--There shall be allowed a credit against 
     the tax imposed by this subtitle for the taxable year an 
     amount equal to 50 percent of the qualified historic building 
     expenses paid or incurred by the taxpayer during such taxable 
     year.
       ``(b) Limitation.--The credit allowed under subsection (a) 
     with respect to any taxpayer for any taxable year shall not 
     exceed $50,000.
       ``(c) Qualified Historic Building Expenses.--For purposes 
     of this section--
       ``(1) In general.--The term `qualified historic building 
     expenses' means amounts paid or incurred to install in a 
     certified historic structure an elevator system or a 
     sprinkler system that meets the requirements found in the 
     most recent edition of NFPA 13: Standard for the Installation 
     of Sprinkler Systems.
       ``(2) National historic landmarks.--In the case of a 
     certified historic structure that is designated as a National 
     Historic Landmark in accordance with section 101(a) of the 
     National Historic Preservation Act (16 U.S.C. 470a(a)) and 
     that is open to the public, the term `qualified historic 
     building expenses' shall not include an expense described in 
     paragraph (1), unless the installation of property described 
     in such paragraph meets the requirements for a certified 
     rehabilitation under section 47(c)(2)(C).
       ``(3) Certified historic structure.--The term `certified 
     historic structure' has the meaning given such term in 
     section 47(c)(3), except that such term shall not include any 
     structure which is a single-family residence.''.
       (b) Conforming Amendments.--
       (1) Section 1324 of title 31, United States Code, is 
     amended by inserting ``, 36C'' after ``, 36B''.
       (2) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 of the Internal Revenue Code of 
     1986 is amended by inserting after the item relating to 
     section 36B the following new item:

``Sec. 36C. Historic building expenses.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after the date of the enactment of this Act.
                                 ______