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FIRE SPRINKLER INCENTIVE ACT
HR 1742/S 582
Background
The cost of fire in America is
enormous. Every year we suffer over 3,200 civilian deaths,
about 100 fire fighter deaths, and over 16,000 injuries.
The direct property damage caused by fire is over $10
billion. However, when you factor indirect costs associated
with fire, such as lost economic activity, this figure
climbs to over $107 billion.
One of the most effective ways to
minimize the loss of life and property is though automatic
sprinklers. The National Fire Protection Association issued
a study in June 2007 that concluded that in buildings that
were sprinkled the death rate per fire can be reduced by at
least 57% and the property damage decreased by up to 68%.
This is because sprinklers contain fires at their location
of origin almost 90% of the times. In fact, no fire fighter
has ever died fighting a fire in a fully structural fire
where sprinklers were present.
Issue
Current building codes require
sprinklers in commercial buildings and there is a growing
number of jurisdictions that have instituted residential
sprinkler ordinances as well. The problem however is there
are tens of thousands of structures that were built and put
in service before sprinklers were required and are
effectively grandfathered from the current standards. This
includes commercial space, college dormitories and even
nursing homes.
The primary challenge to retrofitting
these structures is the Internal Revenue Code. Under
current depreciation rules, building owners have a strong
disincentive to invest in a sprinkler system given the 39
year depreciation schedule for commercial buildings and 27.5
year schedule for residential structures.
Fire Sprinkler Incentive Act
HR 1742/S 582 simply removes this
financial disincentive for building owners to invest in life
saving sprinkler systems. Specifically, it classifies both
commercial and residential sprinkler investments as being
depreciated over 5 years. This legislation is supported by
every major fire association and the insurance, sprinkler,
and building owner industry associations.
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