Office of State Fire Marshal

Fire Sprinkler Incentive Act 357

An Act to amend the code of laws of South Carolina, 1976, by adding section 58-5-390 so as to provide that a public or private utility may not impose a tap fee, recurring maintenance fee, or other fee, however described for the installation and maintenance of a fire sprinkler system that exceeds the Actual costs associated with the water line to the system and to define Actual costs; by adding section 12-6-3622 so as to allow a property tax credit, at the option of the property-taxing entity for twenty-five percent of the costs of installing a fire sprinkler system in a commercial or residential structure when such installation is not required by law, to allow an income tax credit in the amount of the property tax credit, to provide the manner in which these credits are used when earned by pass-through entities, and to make unused credits transferable by the structure's owner to a tenant; to amend section 12-37-3130, as amended, relating to definitions for purposes of the South Carolina real property valuation reform Act, so as to provide that the installation of a fire sprinkler system in a commercial or residential structure when the installation is not required by law is not an addition or improvement; by adding section 10-1-80 so as to prohibit enforcement of that portion of the international fire code or nationally recognized fire code that prohibits the use of natural cut trees in celebrations in houses of worship; and to amend section 12-37-220, as amended, relating to property tax exemptions, so as to exempt the value of fire sprinkler system equipment installed in a commercial or residential structure when the installation is not required by law and to provide that this exemption applies until the property undergoes an assessable transfer of interest.

For Full Act: www.scstatehouse.net/sess117_2007-2008/bills/4470.htm

Due to the increased requests for information concerning local adoption of the Fire Sprinkler Incentive Act 357, the Office of State Fire Marshal is providing information below obtained from the Municipal Association of South Carolina and the South Carolina Department of Revenue. To further assist local entities in the adoption process, the Office of State Fire Marshal will be completing a power-point presentation on the value of fire sprinklers and the specifics of Act 357. This program will be ready for delivery next month. For those desiring this presentation, contact Sondra Senn by phone at 803-896-9865 or by email at: senns@llr.sc.gov.

Municipal Association of South Carolina:

Last spring, the SC General Assembly passed legislation that provides incentives for installing fire suppression systems in buildings not required by law to have sprinkler systems. Municipal Association staff worked with the city attorneys from Columbia, Greenville and Charleston to develop a model ordinance for local governments that want to offer the incentive. As well, the Association has developed a list of recommendations (pdf) regarding the part of the new law that outlines how a city may impose maintenance or installation fees. View copy of the new law.

South Carolina Department of Revenue:

Tax forms developed by the South Carolina Department of Revenue for those choosing to install a non-required fire sprinkler system may receive a 50% tax refund through local & state resources. Preview the Department of Revenue tax credit forms (pdf).