1. Fire and life Safety systems
- Brought to you by your Siloam Springs Fire Department

2. Bottom line is in the facts
Arkansas is one of the top states to loose lives in fires in both adults and in our children.
Commercial and home detection devices sound different, ie smoke detectors and alarm systems.
How many in this room practice home fire drills?
Structures (both residential and commercial) burn faster and hotter than ever before.

3. I am a very large supporter of fire and life safety systems
I am a very large supporter of fire and life safety systems. To the fact that when I build my next home it will be sprinkled. The NFSA is an agency that helps track sprinkler saves throughout the country. I report these near misses in our jurisdiction to them and have at least 2 meetings with them each year. They have been very busy the last 15 years and have finally convinced the federal government to include these very important life saving systems into this tax reform.
Tax reform now includes alarm and sprinkler systems!

4. About Me…
13 years in the fire service full time, 3 years in CRR 1year as the prevention specialist. 4 years as a volunteer 18-22y/o
Currently serve as the secretary and treasurer of the AFMA for the state.
LE certified
Head up the CRR division and Investigation divisions for our department
And still get to fight fire from time to time

5. Fire Sprinklers and Alarm systems save lives and property but most importantly they save lives. They provide for early detection of fire, smoke, and other toxic gasses that can be harmful to human life.
So why do we get push back??
Cost mostly and also Gov regulation. (I get it) understandably there are correct and incorrect ways these systems have to be installed and maintained for them to work properly. That is where I get involved. First to say that particular places must have systems installed and also to verify correct installation according to code.

6. What is code?
We utilize the Arkansas Fire Prevention Code- AFPC and the referenced NFPA standards.
Basically 3 books that are derived from the ICC codes and amended to fit Arkansas, (imagine one set of codes that range anywhere from tiny homes to sky scrapers found in major metropolitan cities. And trying to make everything fit in Siloam Springs as they may in New York City. Hint- its challenging!
So Arkansas amends the ICC and adopts the AFPC – through committees and the State FM Lindsey Williams. Still challenging as LR Arkansas and Siloam Springs are so different in many ways.
Codes are created through the years mostly due to loss of life and or property events and an analysis is conducted to see how it might have been prevented.

7. Tax Incentives
So in the light of knowing that we can make a difference with these systems and get out of this rut of loosing lives and property due to fire and the products it creates, we push daily for these systems to be more cost efficient and attractive to business and home owners both her in AR (AFMA) and nationally IFMA and NFSA and IAFC.
The new tax cuts and jobs act include fire protection systems

9. Section 179 – Tax Deduction
Specific language was added to section 179 that clearly includes fire sprinkler systems.
(f)Qualified real property: For purposes of this section, the term “qualified real property” means—
(1)any qualified improvement property described in section 168(e)(6), and
(2)any of the following improvements to nonresidential real property placed in service after the date such property was first placed in service:
(A)Roofs.
(B)Heating, ventilation, and air-conditioning property.
(C)Fire protection and alarm systems.
(D Security systems.

10. What is “Qualified Real Property?”
Non-residential properties are those that are not homes or dwelling units such as single, multi-family, farms and mixed use with more than 20% residential.
Non-residential properties could include hotels, motels, assembly, warehouses, and mixed use high rise, etc.

11. WHAT IS A SMALL BUSINESS?
Taxpayers who file Form 1040, with Schedules C, E, F or Form 2106, as well as businesses with assets under $10 million.

12. Section 179 – Tax Deduction
Section 179 Tax Deduction Limits for year 2018:
The Section 179 Deduction is now $1,000,000 for 2018, up from $500,000.
This means businesses can deduct the full cost of equipment including fire sprinkler systems up to $1,000,000.
New Total Deductible/Year- $2.5 million.
If the $2.5 million threshold is broken, then Section 168 Bonus Depreciation may apply.

13. Continued
Section 179 is aimed at small to medium businesses that purchase anywhere from $5,000 to $2,500,000 worth of equipment in a tax year.
The full deduction can be claimed until that $2,500,000 number is reached.
Very effective tax deduction for small and medium businesses.

14. Example - $250,000 Fire Sprinkler Retrofit
The old Tax Code did not allow an 1st year tax deduction for fire sprinklers.
Depreciation of $250,000 for commercial would be $6,410 a year for 39-years.
Depreciation of $250,000 for residential would be $9,091 a year for 27.5-years.
What is the new tax incentive?

15. The new Tax Cuts and Jobs Act allows for a 1st year deductible of 100% for fire sprinklers.
But the Tax Deductions are linked to Tax Brackets giving differing results.
If my company’s taxable income is between $416,700 and $444,500 I am in the 35% Tax Bracket or I am taxed $117, plus 35% of any excess over $416,701.
Deductions work the same way, 35% of qualified deductibles.

16. Examples Cost of Fire Sprinklers Cost of Fire Sprinklers $250,000
Section 179 Deduction:
Bonus Depreciation (Section 168):
(100% in 2018)
$0.00
Normal 1st Year Deduction:
Total 1st Year Deduction:
Cash Savings on the Purchase: (35% tax Bracket)
$87,500
Lowered Cost of the Fire Sprinkler System: (After Tax Savings)
$162,500
Cost of Fire Sprinklers
$800,000
Section 179 Deduction:
Bonus Depreciation:
(100% in 2018)
$0.00
Normal 1st Year Deduction:
Total 1st Year Deduction:
Cash Savings on the Purchase: (35% tax Bracket)
$280,000
Lowered Cost of the Fire Sprinkler System: (After Tax Savings)
$520,000

17. Continued.. **Example - $250,000 and $800,000 Fire Sprinkler Retrofit
35% Tax Bracket
1st year deduction benefit
Depreciation
Old tax code: $250,000
Depreciated over 39-years
$0.00
$6,410/year for 39 years
New tax Code
$87,500
$4,276/year for the remaining 38-years
Old Tax Code: $800,000 depreciated over 39-years.
$20,513/year for 39-years
$280,000
$13,684/year for the remaining 38-years

18. Please!!
Go talk to your tax professionals about this news and see how you can take advantage of the hard work of people trying to reduce fire losses. This saves our citizens and our FireFighters each day. By reducing the risk and buying time for escape.
We Can Win This Fight.
Thank you for your time! Dustin Kindell Fire Marshal

19. HOME FIRE SPRINKLER INCENTIVES
IMPROVE COMMUNITY SAFETY
PROVIDE DEVELOPER SAVINGS

20. Today’s home fires are more dangerous for residents*
7 People
80% of fire deaths
12,300
$6.7 billion
Die in U.S. home fires every day
Are in home fires (2,735 civilians)
Civilian
injuries
In direct damage
(ADD LOCAL STATS HERE)
*NFPA data 2016
Home Fire Sprinkler Incentives 20

21. Today’s home fires are more dangerous for firefighters*
11 Times more likely
67% of firefighter injuries
To be injured fighting structure fires
Are from fighting structure fires
(ADD LOCAL STATS HERE)
*NFPA data 2016
Home Fire Sprinkler Incentives 21

22. Home Fire Sprinkler Incentives

23. Home fires can become deadly in less than 2 minutes
According to UL/NIST Data…
Lightweight construction material burns faster and fails quicker, often collapsing in a fire.
Common synthetic furnishings inside today’s homes burn hotter and faster than natural materials and produce toxic deadly smoke (responder health hazard).
Larger, more open designs enable faster flashover.
Home Fire Sprinkler Incentives 23

24. Home fire sprinklers stop a fire from becoming deadly.
Living room after sprinkler activation
Living room after fire without sprinkler
Home Fire Sprinkler Incentives 24

25. Home Fire Sprinkler Incentives

26. NFPA 13D National Installation Standard for One- and Two-family dwellings:
Home Fire Sprinkler Incentives
Intended to prevent injury and life loss.
Only requires sprinklers to be installed in living areas.

27. NFPA 13D National Installation Standard for One- and Two-family dwellings:
Home Fire Sprinkler Incentives
Up to a maximum of 40 gpm, the water supply to accommodate one or two operating sprinklers for at least 10 minutes. 
Two common types of fire sprinkler layouts:
Stand-alone (or independent) uses dedicated pipes that only supply the fire sprinklers.
Multi-purpose combined (or network) uses the pipes that supply the home’s plumbing fixtures to also supply the fire sprinklers.

28. Home fire sprinklers incentives
Offer to builders or developers in exchange for improving life safety by installing home fire sprinklers.
Reduce construction costs and can increase builder profit.
Home Fire Sprinkler Incentives 28

29. Incentives: Street-Width Reduction
Traffic lanes may be narrowed, substantially reducing the amount of pavement in every linear foot of street in the development.
Home Fire Sprinkler Incentives 29

30. Incentives: Longer Dead End Streets
Dead-end streets may be increased in length, allowing additional building lots to be accessed.
Home Fire Sprinkler Incentives 30

31. Incentives: Tee Turnarounds Permitted
The permitted use of tee turnarounds in sprinklered developments can create at least one additional lot per cul-de-sac.
Home Fire Sprinkler Incentives 31

32. Incentives: Increased Street Grades and Building Setbacks
Steeper street grades and building locations allowed further from where the home’s access leaves the main road.
Home Fire Sprinkler Incentives 32

33. Incentives: Additional Units Permitted/Higher Density
Development plans that allow homes to be closer together.
Home Fire Sprinkler Incentives 33

34. Incentives: Expansion of Existing Water Supply May Not Be Needed
Required fire flows for fully sprinklered developments can be greatly reduced compared to non-sprinklered developments.
Home Fire Sprinkler Incentives 34

35. Incentives: Increased Hydrant Spacing
Supply mains may be reduced and hydrant spacing can be increased.
Home Fire Sprinkler Incentives 35

36. Incentives: Gated Communities
Gated communities can delay Fire Department Access. A fully sprinklered subdivision provides mitigation for this impact allowing developers to utilize this security option when desired.
Home Fire Sprinkler Incentives 36

37. Incentives: Subdivision Single Access Point
A fully sprinklered subdivision allows for a single public access road. This decreases infrastructure costs and significantly increases the number of single family dwellings allowed.
Home Fire Sprinkler Incentives 37

38. Incentives: Reduced Basement Windows
Fire sprinklers reduce rescue openings in every basement sleeping room.
Home Fire Sprinkler Incentives 38

39. THANK YOU