Bill S5260-2013

Provides a tax credit for the installation of fire sprinkler systems

Provides a tax credit for the installation of fire sprinkler systems.

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  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • May 15, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S5260

TITLE OF BILL: An act to amend the tax law, in relation to providing tax credits for the installation of fire sprinkler systems

PURPOSE: This bill would incentivize the installation of sprinkler system in residential properties by providing a twenty-five percent tax credit to residential property owners who install such systems.

SUMMARY OF PROVISIONS:

Section 1 amends section 606 of the tax law by adding a new subsection ww that would allow residential property owners who install sprinkler systems to be eligible for a tax credit of twenty-five percent of the cost of labor and materials needed to install such system.

Section 2 amends section 210 of the tax law by adding a new subsection 47 that would allow residential property owners who install sprinkler systems to be eligible for a tax credit of twenty-five percent of the cost of labor and materials needed to install such system.

Section 3 sets forth an immediate effective date.

JUSTIFICATION: On January 21, 2012, Kerry Rose Fitzsimons, Eva Block, and Kevin Johnson were tragically killed in an off-campus house fire while attending Marist College. The fire was so strong and so fast that none of the three students were able to escape.

What is known for certain was that there was no sprinkler system installed in the off-campus home. According to the Fire Sprinkler Initiative, the availability of smoke detectors, coupled with a maintained and operative sprinkler system installed in a residence, decreases the risk of dying in a fire by over 80%. Currently, however, sprinkler systems are only required in newly constructed apartment buildings outside of the "Big 5" cities. Existing apartment buildings-and any other type of residential dwelling-do not currently require sprinkler systems.

It is therefore troubling that many residences in neighborhoods surrounding colleges and universities which are rented to students attending those institutions, often do not have sprinkler systems installed. The intent of this legislation is to appeal to those property owners by offering a financial incentive to add a sprinkler system. Providing a tax incentive will be beneficial not only to the owner of the property, but also to the tenants of the property if the sprinkler system is installed.

Because there are so many residences currently without sprinkler systems-particularly residences surrounding colleges and universities like the one Kerry Rose, Eva, and Kevin were in-it is crucial that we encourage residential property owners to install sprinkler systems. By doing so, we may hope to decrease the occurrences of such tragedies in the future.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5260 2013-2014 Regular Sessions IN SENATE May 15, 2013 ___________
Introduced by Sen. FLANAGAN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to providing tax credits for the installation of fire sprinkler systems THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsections (yy) and (zz) of section 606 of the tax law, as relettered by section 5 of part H of chapter 1 of the laws of 2003, are relettered subsections (yyy) and (zzz) and a new subsection (ww) is added to read as follows: (WW) FIRE SPRINKLER TAX CREDIT FOR RESIDENTIAL PROPERTIES. (1) ALLOW- ANCE OF CREDIT. A TAXPAYER WHO IS A RESIDENTIAL PROPERTY OWNER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE COST OF THE LABOR AND MATERIALS NEEDED TO INSTALL SPRINKLER SYSTEMS AS DEFINED BY SECTION ONE HUNDRED FIFTY-FIVE-A OF THE EXECUTIVE LAW, BY THE RESIDENTIAL PROPERTY OWNER, PROVIDED, HOWEVER, THAT THIS SUBSECTION SHALL APPLY ONLY TO RESIDENTIAL PROPERTIES IN MUNICIPALITIES THAT DO NOT ALREADY REQUIRE FIRE SPRINKLER SYSTEMS BE INSTALLED. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. S 2. Section 210 of the tax law is amended by adding a new subdivision 47 to read as follows: 47. FIRE SPRINKLER TAX CREDIT FOR RESIDENTIAL PROPERTIES. (1) ALLOW- ANCE OF CREDIT. A TAXPAYER WHO IS A RESIDENTIAL PROPERTY OWNER SHALL BE
ALLOWED A CREDIT, TO BE COMPUTER AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE COST OF THE LABOR AND MATERIALS NEEDED TO INSTALL SPRINKLER SYSTEMS AS DEFINED BY SECTION ONE HUNDRED FIFTY-FIVE-A OF THE EXECUTIVE LAW, BY THE RESIDENTIAL PROPERTY OWNER, PROVIDED, HOWEVER, THAT THIS SUBDIVISION SHALL APPLY ONLY TO RESIDENTIAL PROPER- TIES IN MUNICIPALITIES THAT DO NOT ALREADY REQUIRE FIRE SPRINKLER SYSTEMS BE INSTALLED. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. S 3. This act shall take effect immediately.

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