,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #eaff  ,,in ,,the ,,house ,,of  
,,representatives  ,november #ai1       
#bjai,ms4 ,snchez 7for herself1 ,mr4    
,suozzi1 ,mr4 ,danny ,k4 ,davis of      
,illinois1 ,ms4 ,del,bene1 ,mr4         
,panetta1 ,mr4 ,brendan ,f4 ,boyle of   
,pennsylvania1 ,ms4 ,moore1 and ,mr4    
,blumenauer7 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 credit for 
the labor costs of installing mechanical
 insulation property4  #a4 ,short title 
,this ,act may be cited as the          
,mechanical ,insulation ,installation   
,incentive ,act of #bjai4  #b4 ,labor   
costs of installing mechanical          
insulation property  7a7 ,in general    
,subpart ,d of part ,,iv of subchapter  
,a of chapter #a of the ,internal       
,revenue ,code of #aihf is amended by   
adding at the end the following new     
section3  #de,t4 ,labor costs of        

installing mechanical insulation        
property  7a7 ,in general ,for purposes 
of section #ch1 the mechanical          
insulation labor costs credit determined
 under this section for any taxable year
 is an amount equal to #aj percent of   
the mechanical insulation labor costs   
paid or incurred by the taxpayer during 
such taxable year4  7b7 ,mechanical     
insulation labor costs ,for purposes of 
this section-- 7#a7 ,in general ,the    
term mechanical insulation labor costs  
means the labor cost of installing      
mechanical insulation property with     
respect to a mechanical system referred 
to in paragraph 7#b77;,a7 which was     
originally placed in service not less   
than #a year before the date on which   
such mechanical insulation property is  
installed4  7#b7 ,mechanical insulation 
property ,the term mechanical insulation
 property means insulation materials1   
and facings and accessory products      
installed in connection to such         
insulation materials--  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 which result in 
a reduction in energy loss from the     
mechanical system which is greater than 
the expected reduction from the         
installation of insulation materials    
which meet the minimum requirements of  
,reference ,standard #ij4a 7as defined  
in section #agi;,d7c77#b774  7c7        
,termination ,this section shall not    
apply to mechanical insulation labor    
costs paid or incurred after ,december  
#ca1 #bjbd4  4  7b7 ,credit allowed as  
part of general business credit ,section
 #ch7;b7 of such ,code is amended by    
striking plus at the end of paragraph   
7#ca71 by striking the period at the end
 of paragraph 7#cb7 and inserting 1     
plus1 and by adding at the end the      
following new paragraph3  7#cc7 the     
mechanical insulation labor costs credit
 determined under section #de,t7a74  4  

7c7 ,conforming amendments  7#a7        
,section #bhj;,c of such ,code is       
amended by adding at the end the        
following new subsection3  7i7          
,mechanical insulation labor costs      
credit  7#a7 ,in general ,no deduction  
shall be allowed for that portion of the
 mechanical insulation labor costs 7as  
defined in section #de,t7b77 otherwise  
allowable as deduction for the taxable  
year which is equal to the amount of the
 credit determined for such taxable year
 under section #de,t7a74  7#b7 ,similar 
rule where taxpayer capitalizes rather  
than deducts expenses ,if-- 7,a7 the    
amount of the credit determined for the 
taxable year under section #de,t7a71    
exceeds  7,b7 the amount of allowable as
 a deduction for such taxable year for  
mechanical insulation labor costs       
7determined without regard to paragraph 
7#a771  the amount chargeable to capital
 account for the taxable year for such  
costs shall be reduced by the amount of 
such excess4  4  7#b7 ,the table of     

sections for subpart ,d of part ,,iv of 
subchapter ,a of chapter #a of such     
,code is amended by adding at the end   
the following new item3  ,sec4 #de,t4   
,labor costs of installing mechanical   
insulation property4  4  7d7 ,effective 
date ,the amendments made by this       
section shall apply to amounts paid or  
incurred after ,december #ca1 #bjai1 in 
taxable years ending after such date4