104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB2710
 
Introduced 2/6/2025, by Rep. Michael J. Kelly - Martin McLaughlin
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/246 new
    Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who have an approved NFPA 13D residential fire sprinkler system installed in a new or existing residential dwelling in the State during the taxable year. Provides that the credit shall be in an amount equal to 50% of the total cost of the installation but not to exceed $10,000 per taxpayer in any taxable year. Provides that credit awards under the amendatory Act shall be limited to the lesser of 2,000 credit awards per year or $8,000,000 in total credits per year. Provides that the credit is exempt from the Act's automatic sunset provisions. Effective immediately.


LRB104 08222 HLH 19478 b

 
 
A BILL FOR
 
HB2710LRB104 08222 HLH 19478 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by 
5adding Section 246 as follows:
 
6    (35 ILCS 5/246 new)
7    Sec. 246. Residential fire sprinkler installation credit.
8    (a) For taxable years ending on or after December 31, 
92027, each taxpayer who has an approved NFPA 13D residential 
10fire sprinkler system installed by a licensed fire sprinkler 
11contractor maintaining a valid license pursuant to the Fire 
12Sprinkler Contractor Licensing Act in a new or existing 
13residential dwelling in the State during the taxable year 
14shall be eligible, subject to the limitations in subsection 
15(b), for a credit against the taxes imposed by subsections (a) 
16and (b) of Section 201 in an amount equal to 50% of the total 
17cost of the installation but not to exceed $10,000 per 
18taxpayer in any taxable year. 
19    (b) Credits under this Section shall be limited to the 
20lesser of 2,000 credit awards per year or $8,000,000 in total 
21credits per year. The Department shall adopt rules for the 
22processing and awarding of credits under this Section, 
23including when total filings exceed the total authorized 
 
 
HB2710- 2 -LRB104 08222 HLH 19478 b

1credits. 
2    (c) To be eligible for a credit under this Section, a 
3taxpayer shall provide to the Department a copy of the final 
4invoice showing the total cost of the installation of the fire 
5sprinkler system. The invoice shall include the following: 
6        (1) the water main tap fee, if required; 
7        (2) fees and costs for combined sprinkler and domestic 
8    water service; 
9        (3) costs associated with installing, modifying, or 
10    upgrading piping and valves; and 
11        (4) all other installation and testing fees. 
12    (d) In no event shall a credit under this Section reduce 
13the taxpayer's liability to less than zero. 
14    (e) As used in this Section, "approved NFPA 13D 
15residential fire sprinkler system" means a residential fire 
16sprinkler system that meets the requirements of NFPA 13D 
17standards established by the National Fire Protection 
18Association for one-family and 2-family residential dwellings. 
19    (f) This Section is exempt from the provisions of Section 
20250.
 
21    Section 99. Effective date. This Act takes effect upon 
22becoming law.