PRINTER'S NO. 1393
No. 1144 Session of 2007
INTRODUCED BY SOLOBAY, PAYNE, BELFANTI, CONKLIN, DALEY, DENLINGER, FABRIZIO, GEORGE, GERGELY, GINGRICH, GOODMAN, GRUCELA, HALUSKA, HENNESSEY, HUTCHINSON, W. KELLER, KILLION, KORTZ, KOTIK, KULA, LEACH, MAHONEY, MANN, McGEEHAN, MYERS, M. O'BRIEN, PARKER, PETRARCA, RAYMOND, READSHAW, REICHLEY, SCAVELLO, SEIP, K. SMITH, SURRA, J. TAYLOR, WALKO, J. WHITE, WOJNAROSKI, YOUNGBLOOD AND YUDICHAK, APRIL 23, 2007
REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS, APRIL 23, 2007
AN ACT 1 Establishing a tax credit for qualifying costs of automatic fire 2 sprinkler systems. 3 The General Assembly finds and declares as follows: 4 (1) Fires in residences have taken a high toll of life 5 and property. 6 (2) In 2005, at least 396,000 residential fires broke 7 out across the United States, killing 3,055 civilians, 8 injuring 13,825 others and causing $6.9 billion in property 9 damage. 10 (3) Studies by the Federal Emergency Management Agency's 11 United States Fire Administration indicate that the 12 installation of residential fire sprinkler systems could save 13 thousands of lives, prevent injuries and eliminate hundreds 14 of millions of dollars in property losses. 15 (4) The residence of Steven and Rebecca Eddy of
1 Waynesburg in Greene County did not contain an automatic 2 sprinkler system and burned down, killing six children and 3 one adult on February 17, 2007. 4 (5) The National Fire Protection Association has no 5 record of a fire killing more than two people in a public 6 assembly, educational, institutional or residential building 7 where the sprinkler system was properly installed and fully 8 operational. 9 (6) Sprinkler systems dramatically improve the chances 10 of survival of those who cannot save themselves, specifically 11 older adults, young children and people with disabilities. 12 (7) The financial cost of upgrading the fire 13 countermeasures in buildings built prior to fire safety codes 14 is prohibitive for most property owners. 15 (8) The Commonwealth is in need of incentives for the 16 voluntary installation and retrofitting of buildings with 17 automated sprinkler systems to save the lives of countless 18 individuals and responding firefighters and to drastically 19 reduce the costs from property damage. 20 The General Assembly of the Commonwealth of Pennsylvania 21 hereby enacts as follows: 22 Section 1. Short title. 23 This act shall be known and may be cited as the Automatic 24 Fire Sprinkler System Tax Credit Act. 25 Section 2. Definitions. 26 The following words and phrases when used in this act shall 27 have the meanings given to them in this section unless the 28 context clearly indicates otherwise: 29 "Automatic fire sprinkler system." A water distribution 30 system in a building or structure to which fire sprinklers are 20070H1144B1393 - 2 -
1 connected, designed for the purpose of extinguishing fires and 2 classified under one of the following publications of the 3 National Fire Protection Association: 4 (1) NFPA 13, Installation of Sprinkler Systems. 5 (2) NFPA 13D, Installation of Sprinkler Systems in One 6 and Two Family Dwellings and Manufactured Homes. 7 (3) NFPA 13R, Installation of Sprinkler Systems in 8 Residential Occupancies up to and Including Four Stories in 9 Height. 10 "Department." The Department of Revenue of the Commonwealth. 11 "Real estate." Any fee, leasehold or other estate or 12 interest in, over or under land, including structures, fixtures 13 and other improvements and interests which by custom, usage or 14 law pass with a conveyance of land though not described in the 15 contract of sale or instrument of conveyance. The term includes 16 parcels with or without upper or lower boundaries and spaces 17 that may be filled with air or water. 18 "Residential dwelling." A single family unit on real estate 19 used for dwelling purposes. 20 "Qualifying costs." Costs incurred in purchasing or 21 otherwise acquiring an automatic fire sprinkler system, 22 including accessories and installation for use in a single 23 family residence. 24 Section 3. Automatic fire sprinkler system tax credit. 25 (a) Eligible taxes.--The department shall grant a tax credit 26 to approved projects of eligible applicants equal to 50% of the 27 qualifying costs of an automatic fire sprinkler system for a 28 residential dwelling. 29 (b) Tax credit limit.--The tax credit established by this 30 act shall not: 20070H1144B1393 - 3 -
1 (1) Exceed $1,000 for the taxable year in which the 2 automatic fire sprinkler system is installed. 3 (2) Be claimed by the eligible applicant in more than 4 one taxable year. 5 (3) Be refunded to the eligible applicant. 6 Section 4. Sunset for tax credit. 7 No tax credit shall be granted three years after the 8 effective date of this act. 9 Section 5. Maximum yearly aggregate tax credit. 10 The tax credit set forth in this act shall not exceed 11 $2,000,000 in any taxable year. 12 Section 6. Effective date. 13 This act shall take effect in 60 days. D5L72BIL/20070H1144B1393 - 4 -