Fire sprinklers prevent the spread of fire, protecting property, business, employees, patrons and first responders. They also prevent economic loss due to business closure, provide insurance savings and decrease liability risks. If your property is not protected, there has never been a better time to retrofit or upgrade fire sprinkler systems in existing commercial structures, thanks to significant tax incentives passed by Congress.

In addition to combating COVID-19 and its negative economic impacts, the Coronavirus Economic Stabilization (CARES) Act of 2020 also includes a technical correction to the 2017 Tax Cuts and Jobs Act (TCJA) that gives incentives to corporations that retrofit their businesses with fire sprinkler systems.

The 2017 TCJA allows business owners to write off the full cost of commercial fire sprinkler systems as an expense up to $1 million (adjusted for inflation in 2019 to $1.04 million). This benefit enables many small businesses to immediately recover the costs of the upfront investment. Also, those who borrow money to pay for a project can fully deduct the interest expense of the loan.

Section 179 of the U.S. Internal Revenue Code has long allowed small businesses to deduct the cost of certain property like machinery as an expense at the moment it is placed in service—instead of writing it off over its useful life. The new Section 179 deduction applies to upgrading existing systems or retrofitting systems in existing structures. The goal is to stimulate long-term economic growth by encouraging businesses to make capital investments. The Section 179 benefit is not phased out over time.

For big businesses to receive the full TCJA benefit, a company may currently only spend the maximum of $2.59 million on equipment in a year. After that, the deduction phases out on a dollar-for-dollar basis and eventually reaches zero. Therefore, if a property owner purchases more than a $3.63 million system, it doesn’t qualify for a Section 179 deduction. And, for instance, if you spend $2.69 million on property—$100,000 over the cap—you can only write off $940,000 through Section 179, instead of the full $1.04 million.

The TCJA allows businesses to deduct more than the Section 179 limits had previously allowed for certain types of equipment. And for the first time, the law consolidated several categories of equipment—including fire sprinklers—under the umbrella of qualified improvement property (QIP). QIP refers to improvements made by a taxpayer to an interior portion of an existing building that is nonresidential real property.

A drafting error in the final version of the TCJA bill left larger businesses unable to receive the benefits of this new classification, however, that was recently corrected in the CARES Act. Now, under Cost Recovery Section 13201 of the TCJA, QIPs are a qualifying expenditure for bonus depreciation, a method of accelerated depreciation that allows companies to immediately deduct a sizable portion of the purchase price of eligible assets. This means that any size business can deduct 100% of the cost of a sprinkler system installation. To be eligible, the equipment must be put into use after September 27, 2017, and before January 1, 2023. (A tax advisor can help a property owner retroactively claim any missed deductions from installing a fire sprinkler system between September 27, 2017 and present.)

Bonus depreciation only applies the first year the property is placed in service. And between 2023 and 2026, the bonus depreciation percentage is gradually reduced (80% in 2023; 60% in 2024; 40% in 2025; and 20% in 2026) until the depreciation schedule is permanently set at 15 years in 2027. Previously, the cost of all commercial fire protection systems was depreciated over 39 years.

Once bonus depreciation drops below 100%, the remaining cost of the sprinkler system is spread out over 15 years as regular depreciation under Modified Accelerated Cost Recovery System (MACRS), a federal income tax convention that allows for a larger tax deduction in the early years of an asset’s useful life, and less with the passage of time. A professional tax advisor can help a business determine precisely how the new incentives will impact its bottom line. Also, keep in mind that companies must be profitable to take advantage of the tax deduction.

Whether your building is required to install fire sprinklers due to model codes and/or local ordinances or you are looking to upgrade your building’s fire safety, act quickly to take advantage of the federal tax incentives before the full benefits expire.

For more information visit Firesprinklerassoc.org/federal-incentives.

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Wheeling Fire Chief Keith MacIsaac retired in May after 30 years with the fire department. As a fire sprinkler advocate, Chief MacIsaac helped Wheeling become one of the first Illinois communities to require fire sprinklers in all new commercial and residential buildings (including one– and two-family homes) in 2000. He continued defending the fire sprinkler ordinance over the years and, in 2004, he earned the Wayne Luecht Memorial Award for this and other fire prevention efforts. He was also instrumental in Wheeling Fire Station 23 being retrofitted with fire sprinklers in 2012 through funding from a FEMA grant.

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In August 2019, Illinois Governor J.B. Pritzker signed Public Act 101-0210, amending the Animal Welfare Act to add Section 18.2: “A kennel operator that maintains dogs or cats for boarding and that is not staffed at all times dogs or cats are on the premises shall be equipped with at least one fire alarm system or fire sprinkler system in operating condition in every building of the kennel operator that is used for the housing of animals.” The legislation was in response to a tragic fire that killed nearly 30 dogs in a kennel operation in DuPage County near West Chicago in January 2019.

While the law became effective January 1, 2020, the Department of Agriculture, which oversees requirements in the Animal Welfare Act, had not immediately determined what type of fire sprinkler system could be used.

Now, according to Administrative Code effective May 28, 2020, the type of fire sprinkler system was recently clarified. The definitions in Section 25.10 state:

“”Fire Sprinkler System” means one of the following systems that automatically trigger a notification to local emergency responders when activated:

Any water-based automatic fire extinguishing system employing fire sprinklers. The sprinkler system shall be designed in accordance with NFPA 13 (Standard for the Installation of Sprinkler Systems (2013)) and NFPA 101 (Life Safety Code (2015))… “Fire sprinkler system” includes accessory fire pumps and assorted piping, fire standpipes, or underground fire main systems starting at the connection to the water service after the approved backflow device is installed under the requirements of the Illinois Plumbing Code (77 Ill. Adm. Code 890) (Code) and ending at the most remote fire sprinkler; or sprinkler heads that are in a loop of the potable water system, as described in Sections 890.1130 and 890.1200 of the Code.”

Additionally, if a fire sprinkler system(s) is installed, according to Section 25.145,“the kennel operator shall provide a picture and description of the make and model of the system and if the system has been inspected by a qualified fire inspector, a copy of the inspection report.”

“If, during a routine inspection, a qualified fire inspector determines that the kennel operator does not have a fire alarm system or fire sprinkler system, the inspector may inform the Department [of Agriculture].”

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August 2020

One Fire Sprinkler Extinguish Palatine Apartment Dryer Fire

PALATINE, IL (August 27, 2020) – A single fire sprinkler extinguished a clothes dryer fire in a first floor unit at an apartment building at 1205 N. Sterling Avenue in Palatine.

When Palatine fire crews arrived at the scene, they found smoke and water in the hallway. Inside the unit, crews confirmed that one fire sprinkler extinguished the fire. The fire was caused by lint build up in the dryer.

According to a press release from the Palatine Fire Department, fire sprinklers are highly effective and reliable elements of a total fire protection system. When fire sprinklers are present, fires are kept to the room of origin 97 percent of the time (U.S. Experience With Sprinklers, NFPA report, 2017), including this apartment fire.

There were no injuries.

Source: Palatine, IL Patch and Journal-Topics.com

Single Sprinkler Controls Fire At Alsip Recycling Facility

ALSIP, IL (August, 2020) – A single fire sprinkler kept a fire from spreading at Quincy Recycle in Alsip. When fire crews arrived at the scene, they found a single sprinkler controlled a fire in a large paper shredder. Firefighters extinguished the remaining fire.

Source: Alsip Fire Department

Fire Sprinklers Extinguish Fire After Joliet Warehouse Explosion

JOLIET, IL (August 19, 2020) – Fire sprinklers extinguished a fire after a propane floor cleaner exploded inside the Petco warehouse, 4001 Olympic Blvd in Joliet.

According to Joliet Fire Chief Greg Blaskey, the warehouse manager ordered everyone out of the building after an employee operating the floor cleaner ran over a piece of pallet rupturing the propane tank. The cleaner caught fire causing the explosion.

Upon arrival, fire crews found the warehouse full of smoke and the sprinkler system extinguished the fire. There were about a dozen employees working at the time. There were no injuries.

Chief Blaskey credited the sprinkler system for keeping the damage minimal.

Source: Patch.com/Illinois/Joliet

Fire Sprinkler Controls Fire at Dixon Quality Inn Hotel

DIXON, IL (August 15, 2020) – Fire sprinklers prevented a fire from spreading in a first floor room at the Quality Inn Hotel in Dixon.

According to the Dixon City Fire Department, crews were dispatched for an automatic fire alarm, August 15, 8:14 a.m. They were directed to a room on the first floor that had heavy smoke. A majority of the fire had been extinguished by the fire sprinkler system. The building was ventilated to remove excess smoke. There were no reports of injuries. Crews cleared the scene at 10:18 a.m. The fire is suspicious in nature.

Source: Dixon City Fire Department

Two Fire Sprinklers Control Fire Caused by Spontaneous Combustion at Linen Service Facility

COLUMBIA, IL (August 12, 2020) – Two fire sprinklers controlled a fire at the Crown Linen Service located at 322 E. Industrial Drive in Columbia around 7 p.m. August 12.

According to Columbia Fire Chief Mike Roediger, the fire was caused by large bags of towels that combusted. Two sprinklers contained the fire until crews arrived.

Sprinklers controlled a similar fire at the same location in June when a large bag of laundry caught fire.

Crown Linen provides linen services for the restaurant, hospitality, healthcare and sales industries. No injuries were reported.

Source: Republic-Times

Fire Sprinklers Contain Libertyville Warehouse Fire

LIBERTYVILLE, IL (August 10, 2020) – Fire sprinklers stopped a fire from spreading in a high rack storage area at Medline Industries. The warehouse is located at 1501 Harris Road.

When the Libertyville Fire Department arrived on scene, they reported smoke in the south end of the warehouse. Fire sprinklers contained the fire to its initial location. No injuries were reported. The fire is under investigation.

Source: Libertyville Fire Department press release

Fire Sprinklers Stop a Fire From Spreading at Bridgeview Commercial Printing Company

HOMETOWN, IL (August 9, 2020) – Fire sprinklers helped extinguish a fire at Fisher, a commercial printing company in Bridgeview. According to the company website, the business prints more than 3 billion direct mail and magazine inserts per year, so large amounts of paper stock are stored in the facility. According to the Hometown Fire Protection District, the fire was in a paper baler. The fire was extinguished with the help of the fire sprinkler system. No injuries were reported.

Source: Facebook post by Hometown Fire Protection District post on Facebook

Single Sprinkler Extinguished High-Rise Kitchen Fire

OAK PARK, IL (August 8, 2020) – A single fire sprinkler extinguished a kitchen fire in a unit located on the 20^th floor of the Emerson apartment building in Oak Park.

The fire may have been caused by a dog trying to get food that was in a box left on the stovetop. The dog may have turned on a burner, igniting the box. A single concealed fire sprinkler activated and extinguished the fire. The building was back in service that night.

Source: Tim Bartell, Sprinkler Fitters Local 281

Fire Sprinkler Stops Apartment Kitchen Fire From Spreading

BANNOCKBURN, IL (August 1, 2020) – A single fire sprinkler controlled a kitchen fire in an apartment at Owens Hall Trinity International University. According to Fire Marshal Brian McCarthy, Deerfield-Bannockburn Fire Protection District, the resident was heating oil on the stove. The resident left the apartment to retrieve something from their car and was locked out of the building. The oil caught fire and spread to the cabinets above the stove. The sprinkler activated and controlled the fire until crews gained entry and extinguished the remaining fire with a pump can.

No injuries were reported.

Source: Brian McCarthy, Fire Marshal, Deerfield-Bannockburn Fire Protection District

July 2020

Fire Sprinklers Control Fire Caused by Oily Rags at Villa Park Business

VILLA PARK, IL (July 20, 2020) – Fire sprinklers stopped a fire from spreading at a Villa Park business that specializes in cleaning restaurant linens and uniforms. According to Villa Park Fire Chief Ron Rakosnik, firefighters were called to the business on the 1000 block of North Villa Avenue just before 9 p.m. Oily rags ignited activating the sprinkler system.

The business had been closed and no one was inside the building when firefighters arrived. Fire officials estimated about $3,000 in damage with no structural damage. No injuries were reported.

“I am convinced that without the activation of the one sprinkler, the business would not have reopened the next day,” Rakosnik said.

Source: Villa Park Fire Department and The Daily Herald Business Ledger

Fire Sprinklers Control Machine Fire and Protect Commercial Business

MCHENRY, IL (July 18, 2020) – Fire sprinklers controlled a fire that started in a processing machine in a business located in an industrial park.

The McHenry Township Fire Protection District (MTFPD) was dispatched at 8:12 p.m. on July 18, for an activated fire alarm at 833 Ridgeview Drive in McHenry.  Upon arrival to the scene of the one-story large commercial building, firefighters encountered heavy smoke and located the source as a processing machine. The fire was suppressed by the sprinkler system. Firefighters used water pump cans and a dry chemical extinguisher to completely put out the fire before ventilating the building.

“This was a text book example of exactly the manner that sprinklers are designed to work,” said MTFPD Fire Chief Tony Huemann. “The sprinkler system suppressed the main body of fire until the firefighters arrived and completely extinguished the fire.  The activation of the sprinkler system protected the business that produces plastic petroleum products that could have easily become out of control that would have destroyed the entire business and building.”

Source: McHenry Township Fire Protection District (MTFPD)
Northwest Herald: https://www.nwherald.com/2020/07/21/processing-machine-causes-fire-at-mchenry-company/abg2et2/

Fire Sprinkler Extinguished Townhouse Preventing Extensive Damage

DEER PARK, IL (July 17, 2020) – The Lake Zurich Fire Rescue Department responded to a fire in a Deer Park townhome and found a fire sprinkler in the garage extinguished the fire.

When firefighters arrived at the townhome, they found the sprinkler activated and extinguished the fire preventing extensive damage. No injuries were reported.

Source:  Posted by Lake Zurich Fire Rescue Department

Fire Sprinkler Controls Fire at Romeoville Tasty Waffle

ROMEOVILLE, IL (July 8, 2020) – A fire sprinkler prevented a fire from spreading at Tasty Waffle, 632 S. Weber Road in Romeoville. When Lockport Township Fire Protection District responded, they found a small fire in the office. The sprinkler kept the fire small and prevented it from spreading into the restaurant.

The restaurant was unoccupied at the time of the fire and there were no injuries. No other business units in the building were affected by the fire. The cause of the fire appears to be accidental.

Source: Romeoville Patch

Single Sprinkler Controls Fire in Large Multi-Tenant Warehouse Building

ROSELLE, IL (July 7, 2020) – A single fire sprinkler controlled an early morning fire, July 7, in a large multi-tenant commercial building, at 100 N Gary Ave, in Roselle.

According to Chief Mark Bozik, Roselle Fire Department, crews made entry to the pump room and noted fire pump activation, as well as a slight haze and odor of plastic burning.  Conditions revealed dense smoke, but no heat. The crew searched the building and found evidence of a small fire along the south wall, which was completely extinguished by a single sprinkler

The building and contents are valued at more than $6.2 million. The estimated loss thanks to the sprinkler system was $1,000. No injuries were reported.

According to Bozik, this is a perfect example of how an automatic fire sprinkler system can save the property/business owner money and time in the aftermath of a fire.  The fire sprinkler system did what it was designed to do. There was very little property damage, and no injuries or fatalities. The company’s operations were up and running within a day.

Source: Fire Marshal Scott McBride, Roselle Fire Department

June 2020

 Fire Sprinkler Controls Kitchen Fire in Peoria Apartment

PEORIA, IL (June 21, 2020) – A fire sprinkler controlled an early morning kitchen fire, June 21, at New Hope Apartments in Downtown Peoria.

The Peoria Fire Department responded to a smoke alarm call. A sprinkler activated and there was a small fire on the stove and counter top in a fifth floor unit. Firefighters turned off the stove and extinguished the remaining fire.

The fire was determined to be accidental and the local chapter of the American Red Cross was called to help find residents shelter for the evening.

Source: Journal Star

Fire Sprinkler Stops Fire From Spreading At Peoria Country Inn & Suites

PEORIA, IL (June 17, 2020) – A fire sprinkler controlled a fire in a hotel room at the Country Inn & Suites at 5309 W. Landens Way in Peoria Wednesday morning around 7:53 a.m.

While en route, dispatchers received reports of smoke in the building and a full fire response was requested. Upon arrival, fire crews saw smoke in the hallway on the second floor and determined the origin was from a single room. They found the sprinkler system activated preventing the fire from spreading and extinguished the remaining fire.

Firefighters checked remaining rooms for occupants. Everyone safely evacuated and there were no reported injuries. The cause of the fire is under investigation.

Source: 25News Week.com

Fire Sprinkler Stops Fire From Spreading at Linen Service Facility

COLUMBIA, IL (June 15, 2020) – A fire sprinkler controlled a fire at the Crown Linen Service located at 322 E. Industrial Drive in Columbia around 8:25 p.m. on Monday, June 15.

The Columbia Fire Department responded to a call of black smoke showing from the large facility. According to Columbia Assistant Fire Chief Jim Broshears, a large bag of laundry caught fire inside the business, possibly due to spontaneous combustion. The first crew in knocked it down and the fire sprinkler system helped.

Crown Linen provides linen services for the restaurant, hospitality, healthcare and sales industries. There was minimal damage and no injuries were reported.

Source: Republic-Times

Fire Sprinkler Controls Industrial Fire At Construction Business

WARRENVILLE, IL (June 12, 2020) – A single fire sprinkler controlled a fire in a construction building on the 30W200 block of Butterfield Road around 10:30 p.m. on Friday.

Fire crews from the Warrenville Fire Protection District arrived at the scene six minutes after the alarm and called in extra forces from West Chicago Fire Protection District, Wheaton Fire Department, Winfield Fire Protection District and Warrenville Police Department. Once the structure fire response team assembled, crews brought a hose inside to extinguish the fire.

According to Assistant Chief Andy Dina, Warrenville Fire Protection District, an automatic fire sprinkler kept the blaze in check until firefighters arrived. Crews put out the fire quickly, then ventilated the building and checked to ensure the flames did not spread to adjoining units.

Damage was held to common combustibles in the area where the fire originated.

There were no injuries and the cause of the fire was determined to be accidental.

Source: Daily Herald and Warrenville Fire Protection District