Washington, D.C. – On April 11, Congressman Curt Weldon (R-PA) and Congressman Jim Langevin (D-RI) introduced legislation to provide tax incentives for the retrofitting of automatic sprinkler systems in commercial buildings. The legislation, titled the Fire Sprinkler Incentive Act of 2003 (H.R. 1824), would amend the Internal Revenue Code to classify automatic fire sprinklers as a five-year property for purposes of depreciation.
The legislation has been referred to the House Committee on Ways and Means.
The importance of automatic fire sprinkler systems was demonstrated in February when 99 people were killed in a pyrotechnic fire at The Station nightclub in Rhode Island. Three days earlier, there was another pyrotechnic fire at a nightclub in Minnesota. That establishment had an automatic fire sprinkler system and the fire did not cause a single injury.
Currently the installation cost of these expensive systems prohibits many business owners from installing them. This legislation, while not mandating the installation of automatic fire sprinklers, will make it more affordable for businesses to install these systems, increasing fire safety.
“Making renovations, especially installation of sprinkler systems, can be a costly expenditure for businesses. However, as we witnessed so painfully on February 20, it is impossible to put a price on the loss of human life,” said Rep. Langevin, whose congressional district includes Warwick, R.I. where The Station nightclub fire occurred.
“It is disgraceful that in this day and age, going to a concert or a night club is a life-threatening event. A simple sprinkler system and knowledge of safety exits could have turned a horrific tragedy that resulted in nearly one-hundred deaths, into an incident that ended a concert early,” said Weldon.
The benefits of fire sprinkler systems have long been known. In fact, the National Fire Protection Association has no record of a fire killing more than two people in a public assembly, educational, institutional or residential building with a complete and fully operational automatic fire sprinkler system. The effectiveness of sprinkler systems in extinguishing fires or extending the time available for firefighters to respond has been clearly demonstrated.
Unfortunately, due to the costs of implementation, there has been little incentive for property owners to install these systems. This bill would reduce the tax depreciation time on non-residential real property from 39 years to only 5. While this tax incentive may seem large, benefits may also include lower local fire department costs, increased loan activity, reduced insurance claims and premium costs, larger numbers of retrofitting and installation jobs and the generation of payroll tax revenue.
Langevin also introduced a resolution in Congress to honor the victims and survivors of the fire in Rhode Island and to urge increased fire safety in non-residential buildings. The resolution passed the House of Representatives by a vote of 421-0 on March 12. The Senate approved the resolution by unanimous consent on March 13.
