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Internal Revenue Code of 1986

The official body of tax laws for the United States, which determines how individuals and businesses are taxed.

Depreciation

A tax accounting method that allows businesses to deduct the cost of an asset over its useful life, rather than expensing the entire cost in the year it was purchased.

Retrofit

To add a component or accessory to something that was not originally designed to have it, especially when the item is being upgraded after manufacture.

15-year property

A classification of property for tax depreciation purposes, meaning its cost can be deducted over 15 years for tax calculations, typically applying to specific types of improvements or assets.

National Fire Protection Association 13 (NFPA 13)

A standard developed by the National Fire Protection Association that outlines the minimum requirements for the design and installation of automatic fire sprinkler systems.

Automatic fire sprinkler system retrofit property

As defined by this bill, a sprinkler system installed in an existing residential building with an occupiable floor more than 75 feet above the lowest fire department access point, meeting NFPA 13 standards.