Fire sprinkler systems are among the best investments business owners can make when it comes to protecting their employees, customers, and other valuable assets – such as property and inventory – from dangerous, destructive fires. 

For cost-conscious companies operating in a hyper-competitive marketplace, however, the installation price (ranging from $1 to $2 per square foot for new construction and $2 to $7 for building retrofits) may seem prohibitive. 

Fortunately, tax legislation approved in 2017 provides incentives designed to make it more affordable for business owners to protect their futures:   

  • Under Section 179 of the Federal Tax Code, small businesses are now allowed to deduct the cost of installing fire sprinklers on their federal tax returns (up to $1 million per year). *
  • Businesses may also deduct the interest on any loans they take out to fund these upgrades. *
  • The law allows larger companies to fully expense these costs through 2022. Allowable deductions will decrease each year after. **

“Fire sprinkler systems are designed to contain a fire at its origin and prevent it from spreading to other parts of a structure,” explains BCFPD Fire Prevention Director Rob Martel.  “Sprinklers buy additional time for customers and staff members to evacuate and help minimize the risk of serious injury before firefighters arrive on-scene.”

The BCFPD recommends that property and business owners first consult with a tax professional to fully understand the law’s impact on their specific situation.

For more information on the benefits of fire sprinkler systems, contact BCFPD Fire Prevention Director Rob Martel (224-848-4860 or rmartel@bcfpd.us).

 Sources:

*U.S. Fire Administration

**Northern Illinois Fire Sprinkler Advisory Board

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