Fire Sprinkler Tax Incentives
There has never been a better time than now to promote life safety in your business by installing a fire sprinkler system. A new tax incentive has been adopted to allow for immediate cost recovery of a fire sprinkler system installation, upgrade, or retrofit.
The recent passage of the Tax Cuts and Jobs Act incentivizes businesses to install fire sprinkler systems by allowing them to deduct the expense on their federal taxes. Under section 179 of the tax code, businesses can expense up to $1 million for fire sprinkler installations for each year of the expense. Also, in 2018 businesses receive 100% bonus depreciation to potentially allow for immediate cost recovery. In the past, fire sprinkler systems were depreciated over 39 years in commercial properties and 27.5 years in residentials buildings. This new legislation makes it more cost effective than ever to save lives through fire sprinkler installation. For more information on tax reform, visit the NFSA’s website or refer your tax professional to section 179 and 168 of the tax code.
Fire Sprinkler Importance
Lobbying for tax reform for fire sprinkler systems first started in 2003 with the Station Nightclub fire in Rhode Island that led to the death of 100 people. This tragic fire could have been prevented if a fire sprinkler system had been installed in the building. Fire sprinkler systems are one of the most effective ways of extinguishing a fire quickly before a fire causes extensive damage or injury to people. The passage of the new tax reform hopefully will encourage business owners to install sprinkler systems that are critical in saving lives.
Install a System with Island Fire
Island Fire can install a fire sprinkler system in your new building or retrofit a system into an existing building. We design, install, inspect, and test fire sprinkler systems according to your specific needs. The team of experienced technicians at Island Fire will guarantee that your fire protection system meets all local codes and NFPA regulations. We serve the entire New York metro area and are licensed by the NYS Department of State. Contact us today to learn more about working with us to install a fire sprinkler system in your building.