As part of the recently announced US federal tax reform, known as the Tax Cuts and Jobs Act, small businesses will be able to expense the retrofit of fire sprinklersup to a cap of $1 million in each year of expense. In addition, if they need to borrow to pay for the retrofit of sprinklers, small businesses will be able to deduct the interest expense on the loan. These provisions will support the fitting of sprinklers in nightclubs.

Larger entities can fully expense the investment over the next five years but that will slowly taper down from 2023. This will incentivise the retrofit of sprinklers in high-rise and other high risk occupancies built before sprinklers became mandatory.