NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8164
SPONSOR: Gonzalez-Rojas TITLE OF BILL:
An act to amend the tax law, in relation to providing tax credits for
the installation of fire sprinkler systems
PURPOSE OR GENERAL IDEA OF BILL:
This bill would incentivize the installation of sprinkler systems 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
that would allow residential property owners who install sprinkler
systems to be eligible for a tax credit of twenty-live percent of the
cost of labor and materials needed to install such a 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 a 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. Accord-
ing to the Fire Sprinkler Initiative, the availability of smoke detec-
tors, 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 prop-
erty if the sprinkler system is Installed.
PRIOR LEGISLATIVE HISTORY:
2023-2024: A4936 reported to Ways and Means Committee
2022: A8639 reported to Ways and Means committee
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act will take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8164
2025-2026 Regular Sessions
IN ASSEMBLY
May 2, 2025
___________
Introduced by M. of A. GONZALEZ-ROJAS, COLTON, TAPIA, DE LOS SANTOS,
JACOBSON, SEAWRIGHT, SIMON, ANDERSON -- read once and referred to the
Committee on Ways and Means
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:
1 Section 1. Section 606 of the tax law is amended by adding a new
2 subsection (qqq) to read as follows:
3 (qqq) Fire sprinkler tax credit for residential properties. (1) Allow-
4 ance of credit. A taxpayer who is a residential property owner shall be
5 allowed a credit, to be computed as hereinafter provided, against the
6 tax imposed by this article. The amount of the credit shall be equal to
7 twenty-five percent of the cost of the labor and materials needed to
8 install sprinkler systems as defined by section one hundred fifty-five-a
9 of the executive law, by the residential property owner, provided,
10 however, that this subsection shall apply only to residential properties
11 in municipalities that do not already require fire sprinkler systems be
12 installed.
13 (2) Application of credit. If the amount of the credit allowed under
14 this subsection for any taxable year shall exceed the taxpayer's tax for
15 such year, the excess shall be treated as an overpayment of tax to be
16 credited or refunded in accordance with the provisions of section six
17 hundred eighty-six of this article, provided, however, that no interest
18 shall be paid thereon.
19 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
20 sion 61 to read as follows:
21 61. Fire sprinkler tax credit for residential properties. (1) Allow-
22 ance of credit. A taxpayer who is a residential property owner shall be
23 allowed a credit, to be computed as hereinafter provided, against the
24 tax imposed by this article. The amount of the credit shall be equal to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05159-02-5
A. 8164 2
1 twenty-five percent of the cost of the labor and materials needed to
2 install sprinkler systems as defined by section one hundred fifty-five-a
3 of the executive law, by the residential property owner, provided,
4 however, that this subdivision shall apply only to residential proper-
5 ties in municipalities that do not already require fire sprinkler
6 systems be installed.
7 (2) Application of credit. If the amount of the credit allowed under
8 this subdivision for any taxable year shall exceed the taxpayer's tax
9 for such year, the excess shall be treated as an overpayment of tax to
10 be credited or refunded in accordance with the provisions of section six
11 hundred eighty-six of this chapter, provided, however, that no interest
12 shall be paid thereon.
13 § 3. This act shall take effect immediately.
