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
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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:
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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.
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