HB 2523 Summary

• Establishes a non-refundable income tax credit equal to 25% of the actual costs, including installation costs, of automatic fire sprinkler systems installed in new detached one- or two-family residential dwelling units.

• Allows qualifying taxpayers to claim the credit for each eligible sprinkler system installed and placed in service during the taxable year, with multiple owners able to apportion the credit proportionally based on their contribution to costs.

• Permits unused tax credits to be carried forward to subsequent taxable years until exhausted if the credit exceeds the taxpayer's net income tax liability.

• Requires the Director of Taxation to prepare necessary forms, may require proof of claims, and may adopt rules under Chapter 91 to implement the credit provisions.

• Effective January 1, 2019, applies to taxable years beginning after December 31, 2018, and sunsets on June 30, 2025.