“To amend the Internal Revenue Code of 1986 to provide a credit for the labor costs of installing mechanical insulation property.”
No CRS summary available for this bill.
This section establishes a new general business tax credit under new IRC §45BB equal to 10% of qualified labor costs for installing mechanical insulation property (i.e., insulation materials, facings, and accessories) on existing U.S. depreciable mechanical systems, for amounts paid or incurred after December 31, 2025, and before January 1, 2029. Qualifying installations must comply with Reference Standard 90.1 energy efficiency standards (as defined in IRC §179D(c)(2)), reduce energy loss from the mechanical system, and occur on systems placed in service at least one year prior; the credit amount reduces otherwise allowable deductions or capitalized costs under conforming amendments to IRC §280C.