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HOUSE APPROVES FY12 HOMELAND SECURITY SPENDING BILL

On Thursday, June 2nd, the House approved H.R. 2017, the Fiscal Year 2012 Homeland Security Appropriations Act, by of vote of 231-188 .  The bill funds the programs and activities of the Department of Homeland Security through September 30, 2012.

 

The bill, as originally introduced, made significant cuts to the Assistance to Firefighters (FIRE) Grant Program and the Staffing for Adequate Fire and Emergency Response (SAFER) Grant Program.  Initially the programs were funded at a total of $350 million ($200 million for FIRE and $150 million for SAFER), but an amendment offered by Congressman Steven LaTourette (OH-14) and Congressman Bill Pascrell, Jr. (NJ-8) and approved by the House by a vote of 333-87 increased the funding levels to $670 million ($335 million each for FIRE and SAFER).  The programs were funded at $405 million each in Fiscal Year 2011.

 

On Thursday, June 2nd, the House also approved an amendment offered by Congressman David Price (NC-4).  The Price amendment extends waivers allowing fire departments to use SAFER grants to avoid firefighter layoffs and rehire laid-off firefighters.  The waivers also relax certain budgetary requirements that have proven prohibitive to departments applying for SAFER grants.  The Price amendment was approved by a vote of 264-157.

 

The bill will now go to the Senate for consideration.  CFSI will continue to provide updates throughout the Fiscal Year 2012 appropriations process.

FIRE SPRINKLER LEGISLATION INTRODUCED IN THE SENATE

Senator Thomas Carper (DE) introduced the Fire Sprinkler Incentive Act (S. 1035) on May 19, 2011 with Senator Susan Collins (ME) and Senator Frank Lautenberg (NJ) as original co-sponsors.  The legislation was referred to the Senate Finance Committee.  Senators Carper and Collins both serve as co-chairs of the Congressional Fire Services Caucus.  On May 5th, Congressman Aaron Schock (IL-18) and Congressman James Langevin (RI-2) introduced similar legislation, H.R. 1792, in the House.

The original measure was introduced in 2004 following the tragic nightclub fire in West Warwick, RI that claimed the lives of 100 victims.  Since then, the legislation has been reintroduced in subsequent Congresses with various changes made to address concerns raised by members of Congress regarding cost estimates.

Under the current legislation, automatic sprinklers could be treated as Section 179 property under the tax code.   Section 179 allows small and medium-sized businesses to write-off the full cost of equipment purchases, up to $125,000, in a single year.  While automatic fire sprinklers are not currently classified as a Section 179 property, passage of the legislation would allow property owners to retrofit a large majority of high fire risk properties, such as certain off campus housing, night clubs, nursing homes and assisted living facilities.

The legislation would also create a financial incentive for high-rise building owners to install sprinkler systems by reducing the depreciation schedule to 15 years.  Currently the depreciation schedule is 39 years for commercial properties and 27.5 years for residential properties.  This reduction will also put sprinkler improvements more in line with the current tax code that allows 15-year depreciation for leasehold improvements.

 


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