[Congressional Record Volume 163, Number 41 (Thursday, March 9, 2017)]
[Senate]
[Pages S1748-S1749]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS (for herself and Mr. Carper):
  S. 602. 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 pleased to be joined by my colleague from Delaware, 
Senator Carper, in introducing this bipartisan bill.
  In the United States, the annual cost of fires is enormous. In 2015, 
according to the National Fire Protection Association (NFPA), fires 
resulted in approximately $14 billion in direct property loss. In 
addition, more than 3,000 civilians were killed and more than 15,000 
people were injured in fires. The NFPA also reports that a fire 
department responded to a structure fire every 63 seconds.
  These statistics are of particular concern in Maine, which has some 
of the oldest housing stock in the country and which has experienced 
deadly apartment building fires. In 2014, an apartment fire resulted in 
the deaths of six people--Maine's deadliest fire in nearly four 
decades.
  Historically, Maine has also seen commercial property damaged by 
fires. In fact, much of the construction in the historic areas of 
Portland was done following a devastating fire in 1866. This fire 
destroyed a third of the city, including most of Portland's commercial 
buildings, many of its churches, and countless homes.
  The NFPA reports that when fire sprinklers are present during a large 
fire, they are effective 96 percent of the time, saving billions of 
dollars in property damage but more importantly, thousands of lives. 
Our bill would encourage commercial building owners to invest in 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.
  Small business building owners, however, may find it difficult to 
fund retrofit sprinklers. To help these owners, our bill would provide 
two tax incentives to encourage them to make this lifesaving 
investment.
  Currently, commercial building owners must depreciate fire sprinkler 
retrofits over a lengthy 39-year period. The period for residential 
buildings is 7\1/2\ 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.
  This bill was originally drafted in response to the deadly nightclub 
fire in West Warwick, RI, in 2003, which killed a staggering 100 
people. That building did not have a fire sprinkler system. Let us work 
together to lessen the chances of another tragedy like this one. 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 letter of support was ordered to be 
printed in the Record, as follows:

                                         International Association


                                               of Fire Chiefs,

                                       Fairfax, VA, March 6, 2017.
     Hon. Susan Collins,
     U.S. Senate,
     Washington, DC.
       Dear Senator Collins: On behalf of the more than 12,000 
     chief fire and emergency service officers of the 
     International Association of Fire Chiefs (IAFC), thank you 
     for introducing the Fire Sprinkler Incentive Act (FSIA). The 
     IAFC appreciates your leadership in creating an incentive for 
     property owners to retrofit their properties with automatic 
     fire sprinkler systems. If passed, the FSIA will be an 
     important tool to save lives in the future.
       Fires continue to be a devastating problem in Maine and 
     across the United States. According to the National Fire 
     Protection Association (NFPA), in 2015 alone, there were more 
     than 1.3 million fires in the United States which resulted in 
     nearly 3,300 civilian deaths, 15,700 civilian injuries, and 
     $14.3 billion in property damage. Additionally, the U.S. Fire 
     Administration reports that the relative risk of fire death 
     in Maine is 1.5 times higher than the U.S. average. Fire 
     sprinkler systems play a crucial role by significantly 
     increasing the chances of surviving a fire and reducing 
     property damages. The NFPA found that a fire sprinkler system 
     decreases the likelihood of dying in a fire by 83%, reduces 
     property damage by 74%, and confines a fire to its room of 
     origin in 95% of instances. Incentivizing fire sprinkler 
     systems simply makes sense from both life safety and public 
     policy perspectives.

[[Page S1749]]

       Despite the clear benefits of fire sprinkler systems, the 
     current tax code fails to incentivize these lifesaving 
     systems. Your legislation would fix this oversight by 
     classifying fire sprinkler systems as Section 179 expenses 
     and allowing property owners to deduct the cost of 
     retrofitting their buildings. Additionally, the FSIA will 
     allow high-rise building owners to depreciate the costs of 
     these systems much faster than the current tax code allows. 
     The FSIA provides a real incentive for building owners to 
     protect not only their properties but the lives of those 
     people inside them.
       Thank you again for your strong support for the fire and 
     emergency service. The IAFC looks forward to continuing to 
     work with you to protect communities across Maine and the 
     entire United States.
           Sincerely,
                                      Fire Chief John D. Sinclair,
                              President and Chairman of the Board.
                                 ______