Bill > HR2463

This bill aims to create a new tax credit that incentivizes businesses and property owners to install mechanical insulation by offering a 10% credit on labor costs associated with installing insulation on mechanical systems. The credit applies specifically to insulation materials and related accessories installed on mechanical systems located in the United States that are at least one year old, and which meet certain energy efficiency standards (specifically Reference Standard 90.1). To qualify, the insulation installation must result in a reduction of energy loss from the mechanical system. The tax credit would be part of the general business credit and would be available for labor costs paid between January 1, 2026, and December 31, 2028. Importantly, the bill includes provisions that prevent taxpayers from also claiming a full tax deduction for the same labor expenses, ensuring that businesses cannot "double dip" by claiming both a credit and a full deduction. The goal of this legislation appears to be encouraging energy efficiency improvements in mechanical systems by providing a financial incentive for businesses to invest in better insulation.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2463/all-info