HB2710 amends the Illinois Income Tax Act to create a new 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. The credit equals 50% of the total installation cost, capped at $10,000 per taxpayer per year. The bill applies to systems installed by a licensed fire sprinkler contractor and requires the taxpayer to submit a final invoice documenting eligible costs.
The bill sets an annual statewide limit on the credit of the lesser of 2,000 awards or $8,000,000 in total credits. It also specifies that the credit cannot reduce tax liability below zero, applies to taxable years ending on or after December 31, 2027, and is effective immediately upon enactment. The bill further exempts the credit from the Illinois Income Tax Act’s automatic sunset provisions, meaning it would not expire under the usual sunset framework unless later amended.
Impact
HB2710 would add a new Section 246 to the Illinois Income Tax Act and create a targeted personal or business income tax incentive for residential fire sprinkler installations. It would affect taxpayers who own or improve one- and two-family dwellings, licensed fire sprinkler contractors, and the Illinois Department of Revenue, which would be required to adopt rules for processing and awarding the credit. The bill would also create a new state tax expenditure with a capped annual fiscal exposure and would expand the list of tax credits exempt from automatic sunset review.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the available context suggests a generally supportive policy approach centered on fire safety and encouraging sprinkler installation. The bill’s structure indicates an effort to balance that incentive with fiscal controls through per-taxpayer and statewide caps. No formal opposition, amendments, or recorded vote history is available in the provided materials.
Contention
The main potential points of contention are fiscal cost, administrative complexity, and whether a tax credit is the best way to promote residential sprinkler adoption. The statewide cap of 2,000 awards or $8 million annually may draw scrutiny from budget-focused lawmakers, while the requirement for licensed contractors, approved NFPA 13D systems, and invoice documentation could raise implementation questions. Another possible issue is the exemption from automatic sunset provisions, which may concern legislators who prefer periodic review of tax incentives.
Relating to certain municipal regulation of certain mixed-use and multifamily residential development projects and conversion of certain commercial buildings to mixed-use and multifamily residential occupancy.