What's happening
This bill provides a 25% state tax credit for installing fire sprinkler systems in residential properties where they're not already required.
Why it matters
Encourages fire safety upgrades in older or unregulated homes. By targeting properties in areas where sprinklers aren't required, the bill incentivizes voluntary adoption of a proven fire prevention technology, potentially reducing fire-related injuries, deaths, and property loss.
Removes cost as a barrier for homeowners. The 25% tax credit can significantly lower the out-of-pocket expense for installing sprinkler systems, making this safety investment more accessible to a broader range of property owners.
Applies to both personal and corporate property owners. The credit is available under both personal and corporate tax law sections, so landlords, developers, and homeowners alike may benefit, which could lead to safer rental and multi-family housing stock.
Refundable credit increases accessibility. If the credit exceeds a taxpayer's liability, the excess is refunded (without interest), ensuring that lower-income property owners who owe little or no tax can still receive the financial benefit.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Tax Credit for Sprinkler Systems
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Tax Credit for Sprinkler Installation
In Assembly Committee · Ways And Means · Sponsor Michael DenDekker
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3519
2017-2018 Regular Sessions
IN SENATE
January 24, 2017
Introduced by Sen. FLANAGAN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to providing tax credits for the installation of fire sprinkler systems
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Fire sprinkler tax credit for residential properties. (1) Allowance of credit. A taxpayer who is a residential property owner shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article. The amount of the credit shall be equal to twenty-five percent of the cost of the labor and materials needed to install sprinkler systems as defined by section one hundred fifty-five-a of the executive law, by the residential property owner, provided, however, that this subsection shall apply only to residential properties in municipalities that do not already require fire sprinkler systems be installed.
(2) Application of credit. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
§ 2. Section 210-B of the tax law is amended by adding a new subdivision 49 to read as follows:
49. Fire sprinkler tax credit for residential properties. (1) Allowance of credit. A taxpayer who is a residential property owner shall be allowed a credit, to be computer as hereinafter provided, against the tax imposed by this article. The amount of the credit shall be equal to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07712-01-7
S. 3519 2
twenty-five percent of the cost of the labor and materials needed to install sprinkler systems as defined by section one hundred fifty-five-a of the executive law, by the residential property owner, provided, however, that this subdivision shall apply only to residential properties in municipalities that do not already require fire sprinkler systems be installed.
(2) Application of credit. If the amount of the credit allowed under this subdivision for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this chapter, provided, however, that no interest shall be paid thereon.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to providing tax credits for the installation of fire sprinkler systems
Purpose
This bill would incentivize the installation of sprinkler system in residential properties by providing a twenty-five percent tax credit to residential property owners who install such systems.
Summary of provisions
Section 1 amends section 606 of the tax law by adding a new subsection ww that would allow residential property owners who install sprinkler systems to be eligible for a tax credit of twenty-five percent of the cost of labor and materials needed to install such system.
Section 2 amends section 210 of the tax law by adding a new subsection 47 that would allow residential property owners who install sprinkler systems to be eligible for a tax credit of twenty-five percent of the cost of labor and materials needed to install such system.
Section 3 sets forth an immediate effective date.
Justification
On January 21, 2012, Kerry Rose Fitzsimons, Eva Block, and Kevin Johnson were tragically killed in an off-campus house fire while attending Marist College. The fire was so strong and so fast that none of the three students were able to escape.
What is known for certain was that there was no sprinkler system installed in the off-campus home. According to the Fire Sprinkler Initiative, the availability of smoke detectors, coupled with a maintained and operative sprinkler system installed in a residence, decreases the risk of dying in a fire by over 80%. Currently, however, sprinkler systems are only required in newly constructed apartment buildings outside of the "Big 5" cities. Existing apartment buildings-and any other type of residential dwelling-do not currently require sprinkler systems.
It is therefore troubling that many residences in neighborhoods surrounding colleges and universities which are rented to students attending those institutions, often do not have sprinkler systems installed. The intent of this legislation is to appeal to those property owners by offering a financial incentive to add a sprinkler system. Providing a tax incentive will be beneficial not only to the owner of the property, but also to the tenants of the property if the sprinkler system is installed.
Because there are so many residences currently without sprinkler systems-particularly residences surrounding colleges and universities like the one Kerry Rose, Eva, and Kevin were in-it is crucial that we encourage residential property owners to install sprinkler systems. By doing so, we may hope to decrease the occurrences of such tragedies in the future.
Legislative history
2015-16: Investigations and Government Operations 2013-14: Investigations and Government Operations
Fiscal implications
None EFFECTIVE DATE : This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.