What's happening
This bill provides a state tax deduction for the cost of installing mechanical insulation in New York properties.
Why it matters
Encourages energy efficiency and cost savings. By targeting mechanical insulation, the bill incentivizes upgrades that can significantly reduce energy consumption in buildings, potentially lowering utility bills and greenhouse gas emissions.
Targets both material and labor costs. The deduction covers not only the cost of insulation materials but also labor for installation, making the upgrade more financially accessible and possibly stimulating local jobs in construction and retrofitting.
Uses performance-based standards. The deduction is capped at the lesser of 30% of costs or the energy savings above existing building code requirements (ASHRAE 90.1-2007), meaning only projects that exceed minimum efficiency standards get the full benefit—encouraging higher performance.
Prevents double-dipping on tax benefits. Taxpayers cannot claim this deduction in addition to other state tax credits or deductions for the same expenses, ensuring fairness and avoiding duplication of incentives.
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Who cares
Headline styles
Tax Break for Insulation
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 55
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Tax Break for Pipe Insulation
In Assembly Committee · Ways And Means · Sponsor Andrew Hevesi
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
950
2017-2018 Regular Sessions
IN SENATE
January 5, 2017
Introduced by Sen. FUNKE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to providing a tax deduction for the installation of mechanical insulation property
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 20 to read as follows:
(20) The applicable percentage of the cost of mechanical insulation property installed in real property located in this state during the taxable year.
(A) Definitions. For purposes of this subparagraph, the following definitions shall apply: (i) "Applicable percentage" shall mean the lesser of: (I) thirty percent of the cost of the mechanical insulation property placed in service; or (II) the excess, if any, of (a) the energy savings, expressed as a percentage, obtained by placing such mechanical insulation property in service in connection with a mechanical system, over (b) the energy savings, expressed as a percentage, such property is required to meet by standard 90.1-2007, developed and published by the American society of heating, refrigerating and air-conditioning engineers.
(ii) "Cost" shall mean (I) the amounts paid during the taxable year for the purchase of mechanical insulation property that is installed during the taxable year and (II) labor costs paid during the taxable year that are properly allocable to the preparation, assembly and installation of mechanical insulation property; provided, however, in the case of removal and disposal of the old mechanical insulation property, cost shall mean thirty percent of the cost for purchase of the new mechanical insulation property, and provided, further, that if the taxpayer claims the exclusion provided by this subparagraph the taxpayer
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02482-01-7
S. 950 2
shall exclude all amounts included in the exclusion computation pursuant to this subparagraph from the computation of any other exclusion, deduction or credit provided by this chapter. The term cost shall not include any amount properly attributable to maintenance.
(iii) "Mechanical insulation property" shall mean insulation materials, facings and accessory products (I) placed in service in connection with a mechanical system which is located in the state of New York and is of a character subject to an allowance for depreciation; and (II) utilized for thermal, acoustical and personnel safety requirements for mechanical piping and equipment, hot and cold applications, and heating, venting and air conditioning applications which can be used in a variety of facilities.
(B) For the purposes of this subparagraph, energy savings shall be computed pursuant to the regulations promulgated by the commissioner of the department of environmental conservation, in consultation with NYSERDA.
§ 2. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 27 to read as follows:
(27) The applicable percentage of the cost of mechanical insulation property installed in real property located in this state during the taxable year.
(A) Definitions. For purposes of this paragraph, the following definitions shall apply:
(i) "Applicable percentage" shall mean the lesser of:
(I) thirty percent of the cost of the mechanical insulation property placed in service; or
(II) the excess, if any, of (a) the energy savings, expressed as a percentage, obtained by placing such mechanical insulation property in service in connection with a mechanical system, over (b) the energy savings, expressed as a percentage, such property is required to meet by standard 90.1-2007, developed and published by the American society of heating, refrigerating and air-conditioning engineers.
(ii) "Cost" shall mean (I) the amounts paid during the taxable year for the purchase of mechanical insulation property that is installed during the taxable year, and (II) for labor costs paid during the taxable year that are properly allocable to the preparation, assembly and installation of mechanical insulation property, provided, however, in the case of removal and disposal of the old mechanical insulation property, cost shall mean thirty percent of the cost for purchase of the new mechanical insulation property, and provided, further, that if the taxpayer claims the exclusion provided by this subparagraph the taxpayer shall exclude all amounts included in the exclusion computation pursuant to this subparagraph from the computation of any other exclusion, deduction or credit provided by this chapter. The term cost shall not include any amount properly attributable to maintenance.
(iii) "Mechanical insulation property" shall mean insulation materials, facings and accessory products (I) placed in service in connection with a mechanical system which is located in the state of New York and is of a character subject to an allowance for depreciation; and (II) utilized for thermal, acoustical and personnel safety requirements for mechanical piping and equipment, hot and cold applications, and heating, venting and air conditioning applications which can be used in a variety of facilities.
(B) For the purposes of this paragraph, energy savings shall be computed pursuant to the regulations promulgated by the commissioner of
S. 950 3
the department of environmental conservation, in consultation with NYSERDA.
§ 3. This act shall take effect on the one hundred twentieth day after it shall have become a law and shall apply to taxable years commencing on or after such effective date; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to providing a tax deduction for the installation of mechanical insulation property
Purpose
This bill will create tax incentives that will facilitate mechanical insulation maintenance to help foster energy efficiency savings and job growth throughout the state.
Summary of provisions
Section 1-amends paragraph A of subdivision 9 of section 208 of the tax law to define terms necessary to determine the proper calculation of a tax deduction for mechanical insulation.
Section 2-amends subsection c of section 612 of the tax law to define terms necessary to determine the proper calculation of a tax deduction for mechanical insulation.
Section 3-sets forth the effective date
Justification
This bill would create incentives that encourage commercial and industrial entities to go beyond current minimum requirements, as defined by the American Society of Heating, Refrigeration and Air-Conditioning Engineers, in new construction or retrofit projects and execute timely maintenance of mechanical insulation systems. Tax incentives for the commercial and industrial sectors will create jobs, boost energy efficiency, reduce carbon emissions, and help reduce our state's dependence on foreign energy sources, protect our environment and stimulate the economy.
Legislative history
S.4766/A.691 of 2015-2016; Referred to Investigations and Government Operations S.2499/A.4414 of 2013-2014; Referred to Investigations and Government Operations
Fiscal implications
None.
Effective date
This act shall take effect on the one hundred twentieth day after it shall have become a law and shall apply to taxable years commencing on or after such effective date; provided, however, that effective immediately, the addition, amendment and/or repeal of any rile or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.