High Rise Fire Sprinkler Incentive Act of 2025

This section states that the Act may be called the 'High Rise Fire Sprinkler Incentive Act of 2025.'

This section would amend the Internal Revenue Code of 1986 to create a new tax depreciation category for certain fire sprinkler retrofits and to set the depreciation rules that apply to it. It would add automatic fire sprinkler system retrofit property as a new category of 15-year property under section 168(e)(3)(E), alongside the other property types already listed there. It would also add this same property to the list of property types in section 168(b)(3), so that the depreciation method that section 168(b)(3) specifies for the property on that list would apply to fire sprinkler retrofits as well. For purposes of the alternative depreciation system, the depreciation table in section 168(g)(3)(B) would be updated to assign this new category of property a 39-year recovery period. The section would define 'automatic fire sprinkler system retrofit property' to mean a sprinkler system that meets the standards of National Fire Protection Association 13 (or any successor standard that replaces it), is installed for use in residential property, and is installed in a building that was already in service before the sprinkler system was installed and that has an occupiable floor more than 75 feet above the lowest level of fire department vehicle access. All four of those requirements, the standard requirement, the residential-use requirement, the building being placed in service before the installation, and the floor-height requirement, would have to be met for a sprinkler system to qualify. The changes made by this section would apply starting after the date this Act is enacted.