Download This Version in Microsoft Word format
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-10-310 SO AS TO PROVIDE THAT ALL COMMERCIAL AND INDUSTRIAL BUILDINGS MUST HAVE AN INSTALLED AND FUNCTIONING FIRE SPRINKLER SYSTEM; BY ADDING SECTION 12-6-3622 SO AS TO ALLOW A STATE INCOME TAX CREDIT EQUAL TO THE COSTS INCURRED BY A TAXPAYER IN INSTALLING A FIRE SPRINKLER SYSTEM; BY ADDING SECTION 38-73-750 SO AS TO REQUIRE ALL NEW AND RENEWAL POLICIES OF COMMERCIAL FIRE INSURANCE TO PROVIDE NOTICE OF THE AVAILABILITY FOR A PREMIUM CREDIT FOR THE INSTALLATION OF A FIRE SPRINKLER SYSTEM AND PROVIDE THE FORM OF THE NOTICE; AND TO REPEAL SECTION 45-5-80 RELATING TO THE EXEMPTION OF HOTELS FROM FIRE SPRINKLER REQUIREMENTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 10, Title 40 of the 1976 Code is amended by adding:
"Section 40-10-310. Beginning July 1, 2009, all existing and thereafter constructed commercial and industrial buildings must have an installed and functioning fire sprinkler system."
SECTION 2. A. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3622. (A) There is allowed a credit against the tax imposed pursuant to this chapter an amount equal to the direct expenses incurred by the taxpayer after 2007 for the retrofitting of existing structures with a fire sprinkler system for the purpose of compliance with the provisions of Section 40-10-310. For purposes of this section, an existing structure is a structure subject to the requirements of Section 40-10-310 for which a certificate of occupancy was issued before July 1, 2008. To be eligible for the credit, the installation must be made by a fire sprinkler contractor who complies with the requirements of Chapter 10 of Title 40, the Fire Protection Sprinkler Systems Act, and all local licensing and code requirements. The credit allowed by this section may not exceed fifty percent of the taxpayer's income tax liability for the applicable taxable year. Any unused credit may be carried forward to ten succeeding taxable years. The Department of Revenue may require the taxpayer to provide to the department the information and supporting material it determines necessary for the verification of the amount of the credit claimed.
(B) For purposes of this section, fire sprinkler contractor and fire sprinkler system are as defined in Section 40-10-20."
B. Section 12-6-3622 of the 1976 Code, as added pursuant to subsection A of this section, takes effect upon approval of this act by the Governor and applies for taxable years beginning after 2007.
SECTION 3. Article 7, Chapter 73 of the 1976 Code is amended by adding:
"Section 38-73-750. (A) All new and renewal policies must provide a notice statement that a credit for fire prevention due to the installation of a fire sprinkler system is available. The notice must be in eight-point type and must read substantially as follows: 'You are eligible for a credit for having your property protected by a fire sprinkler system. The range of the credit may be from ( ) to ( ) percent. Please contact your agent to obtain this credit when applicable.' The insurer shall complete the notice by providing the general range of credits allowed by the insurer.
(B) This section applies to fire insurance coverage written on commercial policies and commercial multiple peril policies that include property coverage."
SECTION 4. Section 45-5-80 of the 1976 Code is repealed.
SECTION 5. This act takes effect upon approval by the Governor.
This web page was last updated on Monday, June 22, 2009 at 3:10 P.M.