H.R. 2463

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to provide a credit for the labor costs of installing mechanical insulation property.

IN THE HOUSE OF REPRESENTATIVES · March 27, 2025 · Sponsor: Ms. Sánchez · Committee: Committee on Ways and Means

Table of contents

• H.R. 2463
  • Sec. 45BB. Labor costs of installing mechanical insulation property.

Sec. 45BB. Labor costs of installing mechanical insulation property.

• (a) In general
  • For purposes of section 38, the mechanical insulation labor costs credit determined under this section for any taxable year is an amount equal to 10 percent of the mechanical insulation labor costs paid or incurred by the taxpayer during such taxable year.
• (b) Mechanical insulation labor costs
  • For purposes of this section—
  • (1) In general
    • The term means the labor cost of installing mechanical insulation property (including property assembled offsite) with respect to a mechanical system referred to in paragraph (2)(A) which was originally placed in service not less than 1 year before the date on which such mechanical insulation property is installed. mechanical insulation labor costs
  • (2) Mechanical insulation property
    • The term means insulation materials, and facings and accessory products installed in connection to such insulation materials— mechanical insulation property
      • placed in service in connection with a mechanical system which—
        • (i) is located in the United States, and
        • (ii) is of a character subject to an allowance for depreciation,
      • in a manner that meets or complies with the minimum requirements of Reference Standard 90.1 (as defined in section 179D(c)(2)), and
      • the installation of which results in a reduction in energy loss from such mechanical system.
• (c) Termination
  • This section shall not apply to mechanical insulation labor costs paid or incurred after December 31, 2028.