[Congressional Record Volume 161, Number 137 (Tuesday, September 22, 2015)]
[Senate]
[Pages S6896-S6897]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS (for herself and Mr. Carper):
  S. 2068. A bill to amend the Internal Revenue Code of 1986 to include 
automated fire sprinkler system retrofits as section 179 property and 
classify certain automated fire sprinkler system retrofits as 15-year 
property for purposes of depreciation; to the Committee on Finance.
  Ms. COLLINS. Mr. President, I rise to introduce the Fire Sprinkler 
Incentive Act. I am very pleased to be joined by my colleague from 
Delaware, Senator Carper, in introducing this bipartisan bill.
  Our bill would encourage commercial building owners to invest in 
life-saving fire safety upgrades. While building codes require 
sprinklers in new commercial buildings, a great number of structures 
across the U.S. were built and put in service before sprinklers were 
required. This is of significance in Maine, which has some of the 
oldest housing stock in the country and which has experienced deadly 
apartment building fires.
  Maine has a large number of older, historic buildings--buildings that 
generally may not be required to have fire sprinklers. According to the 
Maine State Housing Authority, Maine has the sixth oldest housing stock 
in the country. In fact, many of the historic areas of Portland were 
built following a devastating fire in 1866. This fire destroyed most of 
Portland's commercial buildings, many of its churches, and countless 
homes.
  Fire sprinklers are very effective at preventing deaths caused by 
fires. Small business building owners find it difficult, however, to 
fund adding retrofit sprinklers. Our bill would provide

[[Page S6897]]

two tax incentives to encourage building owners to make this 
investment.
  Currently, commercial building owners must depreciate fire sprinkler 
retrofits over a lengthy 39-year period. The period for residential 
buildings is 27 and a half years. This bill reclassifies fire sprinkler 
retrofits as 15-year depreciable property, thus allowing building 
owners to write off their costs more quickly. The bill also provides an 
option for certain small businesses to deduct the cost of the fire 
system upgrades immediately under Section 179 of the tax code. 
Together, these proposals will provide a strong incentive for building 
owners to install fire sprinkler systems.
  According to the National Fire Protection Association, in 2013, a 
fire department responded to a structure fire every 65 seconds, and 
fire claimed 9 lives every day. Just last October, five young adults 
were killed when fire swept through a two apartment building near the 
University of Southern Maine. In addition to these five, 20 other 
people died in fires in Maine in 2014. Just last month, a fire killed 
two people in Old Town, ME. Sprinklers decrease the fire death rate by 
about 80 percent and the average loss per home fire by about 70 
percent.
  This bill was originally drafted in response to the deadly nightclub 
fire in West Warwick, RI, in 2003. One hundred people died in that 
fire. The building did not have a fire sprinkler system. Let us work 
together to prevent another tragedy like this from happening. I invite 
my colleagues to join Senator Carper and me in support of this 
bipartisan, common sense legislation.
  Mr. President, I ask unanimous consent that a letter of support be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                       Congressional Fire Services


                                                    Institute,

                                               September 18, 2015.
     Hon. Susan Collins,
     U.S. Senate,
     Washington, DC.
       Dear Senator Collins:  On behalf of the Congressional Fire 
     Services Institute (CFSI), I would like to express our thanks 
     and appreciation for sponsoring the Fire Sprinkler Incentive 
     Act. In 2002, CFSI's National Advisory Committee (NAC), a 
     coalition of 35 national fire and emergency service 
     organizations, unanimously approved a resolution expressing 
     the need for federal tax incentives to encourage the 
     installation of automatic fire sprinkler systems in 
     residential and commercial buildings. The introduction of the 
     Fire Sprinkler Incentive Act is an important step in 
     achieving this goal.
       The cost of fire in America is enormous. According to the 
     National Fire Protection Association (NFPA), in 2014, there 
     were 1,298,000 fires reported in the United States, leading 
     to 3,275 civilian fire deaths, 15,775 civilian injuries, and 
     $11.6 billion in property damage. When you include the 
     indirect cost of fire, such as lost economic activity, the 
     cost is closer to $108 billion annually.
       Studies by NFPA have concluded that buildings outfitted 
     with sprinklers reduce the death rate per fire by at least 
     57% and decrease the property damage by up to 68%. By 
     classifying the retrofit of an automatic fire sprinkler 
     system as an eligible property under Section 179 of the tax 
     code, the Fire Sprinkler Incentive Act will save lives by 
     allowing small and medium-sized businesses to deduct the cost 
     of sprinkler systems up to $125,000.00. The legislation would 
     also create a tax incentive for the retrofit of high-rise 
     buildings. In the United States alone, there are nearly 
     10,000 high-rise fires annually. These structures, when not 
     sprinklered, pose serious safety risks to both civilians and 
     firefighters.
       It is an incontrovertible fact that fire sprinklers save 
     lives, including the lives of our firefighters. No 
     firefighter has ever died while fighting a fire in a fully 
     sprinklered structure. But unfortunately approximately 100 
     firefighters die in the line of duty every year. We, as a 
     nation, owe it to our firefighters and their families to make 
     the profession as safe as possible. The Fire Sprinkler 
     Incentive Act will help us achieve that goal.
       We strongly encourage all members of Congress to support 
     this important piece of legislation. Thank you for your 
     leadership on this issue, and best wishes on your continued 
     success and safety.
           Sincerely,
                                                        Bill Webb,
                                               Executive Director.
                                 ______