,i  #aaeth ,,congress  #ast ,session    
,h4 ,r4 #ccdi  ,,in ,,the ,,house ,,of  
,,representatives  ,july #bj1 #bjag,ms4 
,snchez 7for herself1 ,mr4 ,reed1 ,mr4  
,ryan of ,ohio1 and ,mr4 ,meehan7       
introduced the following bill2 which was
 referred to the ,committee on ,ways and
 ,means  ,a ,,bill  ,to amend the       
,internal ,revenue ,code of #aihf to    
provide a tax incentive for the         
installation and maintenance of         
mechanical insulation property4  #a4    
,short title ,this ,act may be cited as 
the ,mechanical ,insulation             
,installation ,incentive ,act of #bjag4 
#b4 ,expensing of mechanical insulation 
property  7a7 ,in general ,part ,,vi of 
subchapter ,b of chapter #a of the      
,internal ,revenue ,code of #aihf       
7relating to itemized deductions for    
individuals and corporations7 is amended
 by inserting after section #agi;,e the 
following new section3  #agi;,f4        
,mechanical insulation property  7a7    
,treatment as expenses ,in addition to  

any other deduction in this subtitle1   
there shall be allowed as a deduction an
 amount equal to the applicable         
percentage of the cost of mechanical    
insulation property placed in service   
during the taxable year4  7b7           
,applicable percentage ,for purposes of 
subsection 7a7-- 7#a7 ,in general ,the  
term applicable percentage means the    
lesser of--  7,a7 #cj percent1 and  7,b7
 the reduction in energy loss 7expressed
 as a percentage7 from the installed    
mechanical insulation property compared 
to reference mechanical insulation      
property which meets the minimum        
requirements of ,,ashrae standard       
#ij4a-bjjg4  7#b7 ,special rule relating
 to maintenance ,in the case of         
mechanical insulation property placed in
 service as a replacement for insulation
 property--  7,a7 paragraph 7#a77;,b7   
shall not apply1 and  7,b7 the cost of  
such property shall be treated as an    
expense for which a deduction is allowed
 under section #afb instead of being    

treated as depreciable for purposes of  
the deduction provided by section #afg4 
7c7 ,definitions ,for purposes of this  
section-- 7#a7 ,mechanical insulation   
property ,the term mechanical insulation
 property means insulation materials1   
facings1 and accessory products--  7,a7 
placed in service in connection with a  
mechanical system which-- 7i7 is located
 in the ,united ,states1 and  7ii7 is of
 a character subject to an allowance for
 depreciation1 and  7,b7 utilized for   
thermal requirements for mechanical     
piping and equipment1 hot and cold      
applications1 and heating1 venting and  
air conditioning applications which can 
be used in a variety of facilities4     
7#b7 ,cost ,the cost of mechanical      
insulation property includes-- 7,a7 the 
amounts paid or incurred for the        
installation of such property for that  
incremental portion above the minimums  
in ,,ashrae standard #ij4a-bjjg and the 
total insulation cost for maintenance   
applications1  7,b7 in the case of      

removal and disposal of the old         
mechanical insulation property1 #aj     
percent of the cost of the new          
mechanical insulation property          
7determined without regard to this      
subparagraph71 and  7,c7 expenditures   
for labor costs properly allocable to   
the preparation1 assembly1 and          
installation of mechanical insulation   
property4  7d7 ,coordination ,subsection
 7a7 shall not apply to the cost of     
mechanical insulation property which is 
taken into account under section #agi;,d
 or which1 but for subsection 7b7 of    
section #agi;,d1 would be taken into    
account under such section4  7e7        
,allocation of deduction for tax-,exempt
 property ,in the case of mechanical    
insulation property installed on or in  
property owned by an entity described in
 paragraph 7#c7 or 7#d7 of section      
#ej7;b71 the person who is the primary  
contractor for the installation of such 
property shall be treated as the        
taxpayer that placed such property in   

service4  7f7 ,certification ,for       
purposes of this section1 energy savings
 shall be certified under regulations or
 other guidance provided by the         
,secretary1 in consultation with the    
,secretary of ,energy4  7g7 ,termination
 ,this section shall not apply to any   
property placed in service after the end
 of the #e-year period beginning on the 
date of the enactment of this section4  
4  7b7 ,deduction for capital           
expenditures ,section #bfc7;a77#a7 of   
such ,code 7relating to capital         
expenditures7 is amended by striking or 
at the end of subparagraph 7,k71 by     
striking the period at the end of       
paragraph 7,l7 and inserting 1 or1 and  
by adding at the end the following new  
subparagraph3  7,m7 expenditures for    
which a deduction is allowed under      
section #agi;,f4  4  7c7 ,technical and 
clerical amendments  7#a7 ,section      
#cab7k77#c77;,b7 of such ,code is       
amended by striking or #agi;,e each     
place it appears in the text or heading 

thereof and inserting #agi;,e1 or       
#agi;,f4  7#b7 ,paragraphs 7#b77;,c7 and
 7#c77;,c7 of section #abde7;a7 of such 
,code are each amended by inserting     
#agi;,f1 after #agi;,e14  7#c7 ,the     
table of sections for part ,,vi of      
subchapter ,b of chapter #a of such     
,code is amended by inserting after the 
item relating to section #agi;,e the    
following new item3  ,sec4 #agi;,f4     
,mechanical insulation property4  4  7d7
 ,effective date ,the amendments made by
 this section shall apply to property   
placed in service after the date of     
enactment of this ,act4