Mechanical Insulation Installation Incentive Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 2463 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 2463 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 Ms. Sanchez (for herself and Mr. Fitzpatrick) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to provide a credit for the labor costs of installing mechanical insulation property. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Mechanical Insulation Installation Incentive Act of 2025''. SEC. 2. LABOR COSTS OF INSTALLING MECHANICAL INSULATION PROPERTY. (a) In General.--Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: ``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 `mechanical insulation labor costs' 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. ``