Bill > S775

This bill, titled the Mechanical Insulation Installation Incentive Act of 2013, aims to provide a tax incentive for businesses to install and maintain mechanical insulation property. Specifically, it amends the Internal Revenue Code of 1986 to allow a deduction for a portion of the cost of this property, which includes insulation materials and related accessories used for mechanical systems in the United States for heating, cooling, and other thermal requirements. The deductible amount is the lesser of 30% of the cost or the percentage of energy loss reduction achieved compared to a standard set by ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) standard 90.1-2007. For insulation property installed as a replacement, the energy loss reduction requirement is waived, and the cost is treated as an immediate expense rather than a depreciable asset. The bill also clarifies that the cost includes installation expenses above the minimum standards, a portion of the cost for removing old insulation, and labor costs. This incentive is intended to encourage the use of more efficient insulation and is set to expire five years after enactment.