Statements on Introduced Bills and Joint Resolutions

Floor Speech

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Ms. COLLINS. Mr. President, I rise to introduce the Fire Sprinkler Incentive Act. I am very pleased to be joined by my colleague from Delaware, Senator Carper, in introducing this bipartisan bill.

Our bill would encourage commercial building owners to invest in life-saving fire safety upgrades. While building codes require sprinklers in new commercial buildings, a great number of structures across the U.S. were built and put in service before sprinklers were required. This is of significance in Maine, which has some of the oldest housing stock in the country and which has experienced deadly apartment building fires.

Maine has a large number of older, historic buildings--buildings that generally may not be required to have fire sprinklers. According to the Maine State Housing Authority, Maine has the sixth oldest housing stock in the country. In fact, many of the historic areas of Portland were built following a devastating fire in 1866. This fire destroyed most of Portland's commercial buildings, many of its churches, and countless homes.

Fire sprinklers are very effective at preventing deaths caused by fires. Small business building owners find it difficult, however, to fund adding retrofit sprinklers. Our bill would provide two tax incentives to encourage building owners to make this investment.

Currently, commercial building owners must depreciate fire sprinkler retrofits over a lengthy 39-year period. The period for residential buildings is 27 and a half years. This bill reclassifies fire sprinkler retrofits as 15-year depreciable property, thus allowing building owners to write off their costs more quickly. The bill also provides an option for certain small businesses to deduct the cost of the fire system upgrades immediately under Section 179 of the tax code. Together, these proposals will provide a strong incentive for building owners to install fire sprinkler systems.

According to the National Fire Protection Association, in 2013, a fire department responded to a structure fire every 65 seconds, and fire claimed 9 lives every day. Just last October, five young adults were killed when fire swept through a two apartment building near the University of Southern Maine. In addition to these five, 20 other people died in fires in Maine in 2014. Just last month, a fire killed two people in Old Town, ME. Sprinklers decrease the fire death rate by about 80 percent and the average loss per home fire by about 70 percent.

This bill was originally drafted in response to the deadly nightclub fire in West Warwick, RI, in 2003. One hundred people died in that fire. The building did not have a fire sprinkler system. Let us work together to prevent another tragedy like this from happening. I invite my colleagues to join Senator Carper and me in support of this bipartisan, common sense legislation.

Mr. President, I ask unanimous consent that a letter of support be printed in the Record.

There being no objection, the material was ordered to be printed in the Record, as follows:

CONGRESSIONAL FIRE SERVICES

INSTITUTE,

September 18, 2015.
Hon. SUSAN COLLINS,
U.S. Senate,
Washington, DC.

DEAR SENATOR COLLINS: On behalf of the Congressional Fire Services Institute (CFSI), I would like to express our thanks and appreciation for sponsoring the Fire Sprinkler Incentive Act. In 2002, CFSI's National Advisory Committee (NAC), a coalition of 35 national fire and emergency service organizations, unanimously approved a resolution expressing the need for federal tax incentives to encourage the installation of automatic fire sprinkler systems in residential and commercial buildings. The introduction of the Fire Sprinkler Incentive Act is an important step in achieving this goal.

The cost of fire in America is enormous. According to the National Fire Protection Association (NFPA), in 2014, there were 1,298,000 fires reported in the United States, leading to 3,275 civilian fire deaths, 15,775 civilian injuries, and $11.6 billion in property damage. When you include the indirect cost of fire, such as lost economic activity, the cost is closer to $108 billion annually.

Studies by NFPA have concluded that buildings outfitted with sprinklers reduce the death rate per fire by at least 57% and decrease the property damage by up to 68%. By classifying the retrofit of an automatic fire sprinkler system as an eligible property under Section 179 of the tax code, the Fire Sprinkler Incentive Act will save lives by allowing small and medium-sized businesses to deduct the cost of sprinkler systems up to $125,000.00. The legislation would also create a tax incentive for the retrofit of high-rise buildings. In the United States alone, there are nearly 10,000 high-rise fires annually. These structures, when not sprinklered, pose serious safety risks to both civilians and firefighters.

It is an incontrovertible fact that fire sprinklers save lives, including the lives of our firefighters. No firefighter has ever died while fighting a fire in a fully sprinklered structure. But unfortunately approximately 100 firefighters die in the line of duty every year. We, as a nation, owe it to our firefighters and their families to make the profession as safe as possible. The Fire Sprinkler Incentive Act will help us achieve that goal.

We strongly encourage all members of Congress to support this important piece of legislation. Thank you for your leadership on this issue, and best wishes on your continued success and safety.

Sincerely,

Bill Webb,
Executive Director.

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