What's happening
This bill creates a tax credit for residential property owners who install fire sprinkler systems in municipalities where they are not already required.
Why it matters
Encourages voluntary fire safety upgrades. by making it more financially feasible for homeowners to install fire sprinkler systems in areas where these are not yet required by law, potentially reducing fire-related injuries, deaths, and property damage.
Targets gaps in local building codes. by focusing the tax credit only on municipalities without existing sprinkler requirements, which could lead to a more uniform level of fire protection across diverse communities.
Provides a refundable credit. , meaning homeowners can benefit even if their tax liability is less than the credit amount, which makes the incentive accessible to lower- and middle-income property owners, not just those with high tax bills.
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Who cares
Individual residential property owners
The bill would offer a refundable personal income tax credit covering 25% of sprinkler installation labor and materials, limited to properties in municipalities that do not already require sprinklers.
Corporate residential property owners
The bill would provide a corresponding refundable corporate tax credit for qualifying sprinkler installations.
Fire sprinkler installers and suppliers
The credit would offset owners’ costs for the labor and materials they provide for eligible residential installations.
Headline styles
Tax Credit for Sprinkler Systems
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to budget and revenue
- Referred to budget and revenue
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 Installs
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
5488
2019-2020 Regular Sessions
IN SENATE
May 2, 2019
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
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 (kkk) to read as follows:
(kkk) 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 54 to read as follows:
54. 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07801-03-9
S. 5488 2
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 or general idea of bill
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 specific 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-live 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 Initi- ative, 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.
Prior legislative history
A3885 of 2017-18 : Referred to Ways and Means. S3519 of 2017-18 : Referred to 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.