IL SB1683

Creates an income tax credit for taxpayers who install an approved NFPA 13D residential fire sprinkler system in a new or existing residential dwelling in Illinois during the taxable year, effective for tax years ending on or after December 31, 2023.

Credit equals 50% of the total installation cost but cannot exceed $10,000 per taxpayer per taxable year.

Eligible costs include water main tap fees, combined sprinkler and domestic water service fees, piping and valve installation or upgrades, and all other installation and testing fees.

Excess credits that exceed tax liability may be carried forward and applied to tax liability for up to five following taxable years, with earlier credits applied first.

Credit is exempt from automatic sunset provisions under Section 250 of the Illinois Income Tax Act and requires taxpayer to provide final invoice documentation to the Department.