,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #bdfc  ,,in ,,the ,,house ,,of  
,,representatives  ,march #bg1 #bjbe,ms4
 ,snchez 7for herself and ,mr4          
,fitzpatrick7 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 #bjbe4  #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;,,bb4 ,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          
7including property assembled offsite7  
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  7,b7 in a manner that    
meets or complies with the minimum      
requirements of ,reference ,standard    
#ij4a 7as defined in section            
#agi;,d7c77#b771 and  7,c7 the          
installation of which results in a      
reduction in energy loss from such      
mechanical system4  7c7 ,termination    
,this section shall not apply to        
mechanical insulation labor costs paid  
or incurred after ,december #ca1 #bjbh4 
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#dj71 by  
striking the period at the end of       
paragraph 7#da7 and inserting 1 plus1   
and by adding at the end the following  
new paragraph3  7#db7 the mechanical    
insulation labor costs credit determined
 under section #de;,,bb7a74  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;,,bb7b77 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;,,bb7a74  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;,,bb7a71 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;,,bb4
 ,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 #bjbe1 in 
taxable years ending after such date4