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HOUSE · HR 173 119 CONGRESS

High Rise Fire Sprinkler Incentive Act of 2025

INTRODUCED
January 03, 2025
POLICY AREA
Taxation
STATUS
Referred to the House Committee on Ways and Means.
SOURCE
Congress.gov ↗

Bill Summary

H.R. 173, the High Rise Fire Sprinkler Incentive Act of 2025, amends the Internal Revenue Code of 1986 to provide accelerated depreciation for automatic fire sprinkler system retrofits in high-rise residential buildings. The bill modifies section 168(e)(3)(E) to include automatic fire sprinkler system retrofit property as 15-year property, amends section 168(b)(3) to specify the applicable depreciation method for such property, updates the table in section 168(g)(3)(B) to assign a 39-year recovery period for this property (note: this appears to be a typo or error in the bill as it assigns 39 years despite classifying as 15-year property elsewhere), and adds a definition in section 168(i)(20) specifying that such property must meet NFPA 13 standards, be installed in residential property, and be in a building with an occupiable floor more than 75 feet above the lowest level of fire department vehicle access. The effective date is after enactment. The intent is to incentivize building owners to retrofit older high-rise residential buildings with modern fire sprinkler systems by allowing faster tax depreciation recovery, thereby improving fire safety in existing high-rise housing stock.

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Where Each Party Stands

Democrats

MIGHT SUPPORT
+Directly addresses a critical public safety hazard: lack of fire sprinklers in older high-rise residential buildings.
+Uses tax policy to incentivize life-saving improvements that building owners might otherwise delay or avoid due to upfront costs.
+Helps protect vulnerable populations, including low-income residents, elderly, and disabled individuals who may have difficulty evacuating high-rises.
+Can reduce fire-related deaths, injuries, and property damage, disproportionately benefiting communities of color and low-income neighborhoods often located in older housing stock.
+Complements existing federal and local fire safety initiatives by providing a financial incentive for retrofits.
+The 75-foot threshold specifically targets buildings where fire department ladder access is limited, increasing relevance.
+May stimulate job creation in the fire protection and construction industries.
MIGHT OPPOSE
−The tax benefit may disproportionately benefit property owners and landlords rather than tenants, who bear the risk but may not see direct benefits such as lower rents.
−Represents a regressive use of tax policy where subsidies go to property owners without requiring corresponding benefits to renters (e.g., rent freezes or improved habitability).
−Adds to the growing list of targeted tax breaks that complicate the tax code and favor specific industries.
−May not be sufficient to overcome financial barriers for small landlords or non-profit housing providers without additional grants or low-interest loans.
−Risk that developers could claim the benefit for luxury high-rises that would likely install sprinklers anyway for market reasons.
−Does not address other fire safety deficiencies in older buildings, such as inadequate egress, alarm systems, or fire-resistant materials.
−Could be seen as substituting tax incentives for stronger regulatory mandates that would ensure universal coverage.

Republicans

MIGHT SUPPORT
+Encourages private investment in fire safety improvements through tax incentives rather than government mandates.
+Uses market-based approach to improve public safety by leveraging tax code efficiencies.
+Reduces long-term government firefighting and emergency response costs by preventing fires from spreading in high-rises.
+Supports small business owners and landlords by lowering the after-tax cost of safety upgrades.
+Aligns with Republican principles of using targeted tax relief to achieve social goals without increasing federal spending directly.
+May increase property values and tax base for local governments over time.
+Focuses on residential buildings, protecting families and vulnerable populations in high-density housing.
MIGHT OPPOSE
−Adds complexity to an already complex tax code with another special provision.
−Creates another tax loophole that could be exploited or lead to unequal treatment.
−Reduces federal tax revenue, contributing to budget deficits unless offset by other measures.
−May primarily benefit wealthy real estate developers rather than average homeowners or renters.
−Question whether the federal government should be involved in dictating depreciation schedules for specific safety equipment.
−Risk of fraudulent claims or abuse if definitions are not tightly enforced.
−Does not address root causes of fire safety issues in older buildings, such as inadequate building codes enforcement.

History

Jan 03, 2025
Referred to the House Committee on Ways and Means.
Jan 03, 2025
Introduced in House
Jan 03, 2025
Introduced in House
SPONSOR
Rep. Malliotakis, Nicole [R-NY-11]
RELATED BILLS
S 504 — High Rise Fire Sprinkler Incentive Act of 2025
SUBJECTS
Business investment and capital Fires Income tax deductions Residential rehabilitation and home repair