Fire sprinklers were invented nearly two centuries ago in the mid 1800s. Even then, insurance companies recognized the value of fire sprinklers and provided incentives to building owners who had them installed.
Insurance companies know that fire sprinkler systems will substantially improve the safety of a building resulting in less money paid out for losses. Therefore, the discounts offered on insurance premiums have always been one of the considerations for offsetting the fire sprinkler system cost.
Insurance Rating Systems
Although it is standard for insurance companies to offer discounts on premiums for fire sprinkler systems, exact discounts cannot be expressed because every insurance Continue reading “Evaluating Fire Sprinkler System Cost: Part 3” »
Federal Income Tax Incentives for Fire Protection
Businesses and individuals are all required to pay taxes on income. Since income tax rules vary from state to state, we will focus on deductions that can be allowed on federal income taxes.
Businesses that install fire sprinkler systems in their buildings can benefit from three types of federal income tax deductions:
- A tax deduction can be taken for the interest spent on a loan that is used to install a fire sprinkler system.
- Renovations of older or historic buildings may qualify a business for a federal Qualified Rehabilitation Tax Credit of 10-20% of renovation expenses.
- A depreciation allowance can be taken each year for the value of a fire sprinkler system.
Continue reading “Evaluating Fire Sprinkler System Cost: Part 2” »
Fire sprinkler systems are required by most local codes and ordinances because they have been proven to provide very necessary protection while also being simple and affordable to install. For building owners and business operators, it is greatly worth the fire sprinkler system cost of proper installation because the financial benefits of protection are substantial.
If you own or are planning on purchasing a building that isn’t already properly equipped, retrofitting the building with an effective fire sprinkler system is a sound investment. The National Fire Sprinkler Association conducted research regarding fire sprinkler system cost savings. They found that properly installed fire sprinkler systems resulted in Continue reading “Evaluating Fire Sprinkler System Cost: Part 1” »