Provides a tax deduction for the installation of mechanical insulation property in any taxable year; provides that such deduction shall be for the lesser of 30% of the cost of such property or the excess in energy savings provided by such property.
STATE OF NEW YORK
________________________________________________________________________
6679
2011-2012 Regular Sessions
IN ASSEMBLY
March 24, 2011
___________
Introduced by M. of A. HEVESI -- read once and referred to the Committee
on Ways and Means
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 Assem-bly, do enact as follows:
1 Section 1. Subsection (c) of section 612 of the tax law is amended by
2 adding a new paragraph 27 to read as follows:
3 (27) The applicable percentage of the cost of mechanical insulation
4 property placed in service during the taxable year.
5 (A) For the purposes of this paragraph:
6 (i) "Applicable percentage" shall mean the lesser of:
7 (I) thirty percent of the cost of the mechanical insulation property
8 placed in service; or
9 (II) the excess, if any, of (a) the energy savings, expressed as a
10 percentage, obtained by placing such mechanical insulation property in
11 service in connection with a mechanical system, over (b) the energy
12 savings, expressed as a percentage, such property is required to meet by
13 standard 90.1-2007, developed and published by the American society of
14 heating, refrigerating and air-conditioning engineers.
15 (ii) "Cost" shall include:
16 (I) the amounts paid or incurred for the installation of such mechan-
17 ical insulation property;
18 (II) expenditures for labor costs properly allocable to the prepara-
19 tion, assembly and installation of mechanical insulation property; and
20 (III) in the case of removal and disposal of the old mechanical insu-
21 lation property, thirty percent of the cost of the new mechanical insu-
22 lation property, determined without regard to the tax credit authorized
23 by this subsection.
24 (iii) "Mechanical insulation property" shall mean insulation materi-
25 als, facings and accessory products:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09957-02-1
A. 6679 2
1 (I) placed in service in connection with a mechanical system which is
2 located in the state of New York and is of a character subject to an
3 allowance for depreciation; and
4 (II) utilized for thermal, acoustical and personnel safety require-
5 ments for mechanical piping and equipment, hot and cold applications,
6 and heating, venting and air conditioning applications which can be used
7 in variety of facilities.
8 (B) In the case of mechanical insulation property placed in service as
9 a replacement for insulation property, subclause (II) of clause (i) of
10 subparagraph (A) of this paragraph shall be applied without regard to
11 item (b) thereof.
12 (C) The amount of any other credit or deduction allowable under this
13 chapter for any cost of mechanical insulation property which is taken
14 into account under paragraph one of this subsection shall be reduced by
15 the amount of such cost so taken into account; provided, however, that
16 this paragraph shall not apply to any amount properly attributable to
17 maintenance.
18 (D) In the case of mechanical insulation property installed on or in
19 property owned by an entity described in paragraph three or four of
20 section 50(b) of the internal revenue code, the person who is the prima-
21 ry contractor for the installation of such property shall be treated as
22 the taxpayer that placed such property in service.
23 (E) For the purposes of this subsection, energy savings shall be
24 certified under regulations or other guidance provided by the department
25 of environmental conservation.
26 § 2. This act shall take effect on the one hundred twentieth day after
27 it shall have become a law and shall apply to taxable years commencing
28 on or after such effective date; provided, however, that effective imme-
29 diately, the addition, amendment and/or repeal of any rule or regulation
30 necessary for the implementation of this act on its effective date are
31 authorized and directed to be made and completed on or before such
32 effective date.
