How HR 173 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill classifies certain automatic fire sprinkler system retrofits as 15-year property for depreciation purposes.

• Section 168(e)(3)(E)

  and → , and

  The bill adds a conjunction to allow for the addition of new categories under the section.

• Section 168(e)(3)(E)

  the period at the end of clause (vii) → , and

  This enables the addition of another classification for property.

• Section 168(e)(3)(E)

  (viii) any automatic fire sprinkler system retrofit property.

  This establishes automatic fire sprinkler system retrofits as a new category eligible for 15-year depreciation.

• Section 168(b)(3)

  (H) Any automatic fire sprinkler system retrofit property.

  It specifies the applicable depreciation method for automatic fire sprinkler system retrofits.

• Section 168(g)(3)(B)

  (E)(viii)................................................ 39

  This updates the table to include the new classification of automatic fire sprinkler system retrofits.

• Section 168(i)

  Automatic fire sprinkler system retrofit property.-- The term `automatic fire sprinkler system retrofit property' means any sprinkler system which-- (A) meets the standards of National Fire Protection Association 13 (or any successor benchmark), (B) is installed for use in residential property, and (C) is installed in a building which-- (i) was placed in service before the date of such installation, and (ii) has an occupiable floor more than 75 feet above the lowest level of fire department vehicle access.

  This provides a definition for what constitutes automatic fire sprinkler system retrofit property.