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SB 1709

INC TX-FIRE SPRINKLERS

104th Regular Session Introduced by Rob Martwick

Creates a 50% Illinois tax credit for NFPA 13D residential fire sprinkler installs in 1-2 family homes, up to $10,000 per taxpayer per year, with annual caps ($8M or 2,000 credits).

Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 1709

Summary — SB 1709 (Residential Fire Sprinkler Installation Tax Credit)

Status: Enacted by the General Assembly; signed by the Governor (6/20/2025); law effective 9/1/2025.
Companion bill: HB 1373.

Note: The supplied materials also included an unrelated Arizona SB 1709 (amendment to ARS §13‑2927 on unlawful feeding of wildlife). This summary focuses on the Illinois measure titled and drafted as a residential fire‑sprinkler tax credit.

Purpose

Create a state income tax credit to encourage installation of approved residential fire sprinkler systems (NFPA 13D standard) in new or existing one‑ and two‑family dwellings, by offsetting a portion of installation costs.

Key provisions

  • Tax credit amount: 50% of the total cost of installing an approved NFPA 13D residential fire sprinkler system, capped at $10,000 per taxpayer in any taxable year.
  • Program caps: Annual award of credits limited to the lesser of 2,000 credits per year or $8,000,000 in total credits per year.
  • Eligibility: Credit available to taxpayers who have an approved NFPA 13D system installed by a licensed fire sprinkler contractor (licensed under applicable Illinois law).
  • Documentation: Taxpayers must submit to the Department of Revenue a copy of the final invoice showing total installation cost. The invoice must itemize:
    1. Water main tap fee (if required);
    2. Fees/costs for combined sprinkler and domestic water service;
    3. Costs for installing/modifying/upgrading piping and valves;
    4. All other installation and testing fees.
  • Nonrefundable floor: The credit cannot reduce a taxpayer’s liability below zero.
  • Administration: The Department of Revenue is authorized to adopt rules and procedures for awarding and processing credits, including procedures for allocating or prorating credits if total filings exceed the annual cap.
  • Standard: “Approved NFPA 13D residential fire sprinkler system” is defined consistent with NFPA 13D requirements for one‑family and two‑family dwellings.
  • Sunset exemption: The credit is explicitly exempted from the automatic sunset provisions that would otherwise apply.

Effective date / Timing

  • Law effective 9/1/2025 (per legislative action).
  • The text specifies eligibility for taxable years ending on or after December 31, 2027, meaning taxpayers installing systems prior to that taxable year may not qualify; confirm with Department of Revenue guidance for application timing.

Who is affected / potential impact

  • Beneficiaries: Homeowners/taxpayers who purchase installation of NFPA 13D sprinkler systems in eligible residences, and licensed fire sprinkler contractors (increased demand).
  • Fiscal impact: The program is capped at $8 million per year (or 2,000 credits), which bounds the annual explicit cost to the state. The credit may increase installation rates of residential sprinklers, with potential secondary effects on fire safety outcomes and local building‑service industry revenue.
  • Administrative: Department of Revenue will incur administrative responsibilities for processing applications and enforcing the cap.

For implementation details (filing procedure, forms, and any pro‑ration method when caps are exceeded), consult forthcoming Department of Revenue rules and guidance after the law’s effective date.

Compiled from official sources — confirm details with the bill’s official record.

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