H.R. 173 — High Rise Fire Sprinkler Incentive Act of 2025

This section classifies automatic fire sprinkler system retrofit property as 15-year property under the modified accelerated cost recovery system (MACRS), applies the 150% declining balance depreciation method to such property, and sets the alternative depreciation system recovery period at 39 years. Automatic fire sprinkler system retrofit property includes any sprinkler system meeting National Fire Protection Association 13 standards (or successor) that is installed in residential property within a building placed in service before installation and having an occupiable floor more than 75 feet above the lowest level of fire department vehicle access (i.e., existing residential high-rises). The amendments apply to property placed in service after the date of enactment.