Complete Story
03/11/2009
Mechanical Insulation Installation Incentive Act of 2009 Introduced in House of Representatives
Rep. Deborah Halvorson (D-IL) presented House Resolution 4296 on December 11, 2009, to amend the tax code to provide an incentive to install and maintain mechanical insulation. The Mechanical Insulation Installation Incentive Act (MIA 09) creates an incentive for commercial and industrial entities to go beyond current minimum requirements for mechanical insulation systems (as defined by the American Society of Heating, Refrigeration, and Air-Conditioning Engineers 90.1-2007) in new construction or retrofit projects, as well as execute timely maintenance. This tax incentive will create jobs, boost energy efficiency, and reduce carbon emissions, helping reduce our country's dependence on foreign energy sources, protecting our environment, and stimulating our economy.
Mechanical insulation encompasses thermal, acoustical, and personnel safety requirements for mechanical piping and equipment and heating, ventilating, and air conditioning applications. It is used in a variety of commercial buildings and industrial facilities, including power plants, refineries, hospitals, schools, universities, government and office buildings, high-rise multi-family dwellings, hotels and motels, and retail and wholesale establishments.
MIA 09 provides facility owners an incentive to increase the use of or maintenance of mechanical insulation by lowering their tax expense in the fiscal year in which the mechanical insulation was put in service or maintenance completed. If the property owner is not subject to U.S. income tax, the tax deduction would transfer to the primary contractor for the property, providing an incentive for energy efficiency regardless of the property owner's tax status.
The incentive will reduce the time it takes for the energy cost savings to pay for the initial investment by 37 percent to 69 percent for new construction or retrofit and 16 percent to 23 percent for maintenance applications. It will also support the development of more than 89,000 sustainable jobs for skilled craft personnel to install and maintain the mechanical insulation systems, in addition to technical/engineering, manufacturing, sales, administrative and supporting craft jobs.
This initiative is supported by NIA and International Association of Heat and Frost Insulators and Allied Workers.
