Incentives to Invest in a Fire Sprinkler System


Did you know that there are substantial tax incentives for investing in fire sprinkler systems for commercial structures?


In December 2017, Congress passed tax reform legislation under Public Law 115-97 that make it more affordable for small business owners to install fire sprinklers.

Section 179 of the tax code considers fire protection to be an eligible expenditure for small businesses to deduct on their federal taxes. Congress also increased the cap to $1 million that a small business can deduct in a single year! These deductions only apply to commercial structures,  not for retrofitting sprinklers in residential structures. Newly added as of March 27, 2020, high-rise commercial buildings are now also eligible for these incentives under Section 168.

Tax Reform Info
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Another plus is that the law in Cost Recover Section 13201 states, any sprinkler system installed or upgraded in an existing commercial structure after September 27, 2017, until December 31, 2022, will be able to be fully expensed. That’s a big cost offset! After 2022 the ability to deduct the cost decreases.

Contact your tax attorney today to verify these beneficial tax credits for life safety systems that significantly improve your building. Ask them about the Small Business Section 179 or the Cost Recover Section 13201. For more information from NFSA, click here.

The USAFP team doesn’t want you to miss out on these excellent incentives. If your next project qualifies, reach out to our main office team at 847-816-0050. For projects located in Wisconsin, please call 262-782-3311. To learn more about the fire and life safety systems we offer, click here.

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