HB 206 Summary

• Establishes a state income tax credit equal to 30% of the actual cost of installing an automatic fire sprinkler system in new one- or two-family owner-occupied residential dwellings, including installation, materials, water, and permitting fees.

• Tax credit is limited to a maximum of $5,000 per dwelling unit, with only one credit allowed per tax map key number.

• Eligible taxpayers must file an individual income tax return and own-occupy the dwelling; if the credit exceeds annual tax liability, excess amounts carry forward to subsequent tax years.

• Tax credit is not available if the state or county requires fire sprinkler installation.

• Act sunsets on June 30, 2030.