S T A T E   O F   N E W   Y O R K
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                                  4414

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            February 5, 2013
                               ___________

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:

  Section  1.  Paragraph  (a) of subdivision 9 of section 208 of the tax
law is amended by adding a new subparagraph 18 to read as follows:
  (18) THE APPLICABLE PERCENTAGE OF THE COST  OF  MECHANICAL  INSULATION
PROPERTY  INSTALLED  IN  REAL  PROPERTY LOCATED IN THIS STATE DURING THE
TAXABLE YEAR.
  (A) DEFINITIONS. FOR PURPOSES  OF  THIS  SUBPARAGRAPH,  THE  FOLLOWING
DEFINITIONS  SHALL  APPLY:  (I)  "APPLICABLE  PERCENTAGE" SHALL MEAN THE
LESSER OF: (I) THIRTY PERCENT OF THE COST OF THE  MECHANICAL  INSULATION
PROPERTY PLACED IN SERVICE; OR (II) THE EXCESS, IF ANY, OF (A) THE ENER-
GY  SAVINGS, EXPRESSED AS A PERCENTAGE, OBTAINED BY PLACING SUCH MECHAN-
ICAL INSULATION PROPERTY IN SERVICE  IN  CONNECTION  WITH  A  MECHANICAL
SYSTEM,  OVER  (B)  THE  ENERGY SAVINGS, EXPRESSED AS A PERCENTAGE, SUCH
PROPERTY IS REQUIRED  TO  MEET  BY  STANDARD  90.1-2007,  DEVELOPED  AND
PUBLISHED BY THE AMERICAN SOCIETY OF HEATING, REFRIGERATING AND AIR-CON-
DITIONING ENGINEERS.
  (II)  "COST"  SHALL  MEAN (I) THE AMOUNTS PAID DURING THE TAXABLE YEAR
FOR THE PURCHASE OF MECHANICAL INSULATION  PROPERTY  THAT  IS  INSTALLED
DURING  THE  TAXABLE  YEAR  AND (II) LABOR COSTS PAID DURING THE TAXABLE
YEAR THAT ARE  PROPERLY  ALLOCABLE  TO  THE  PREPARATION,  ASSEMBLY  AND
INSTALLATION  OF  MECHANICAL  INSULATION PROPERTY; PROVIDED, HOWEVER, IN
THE CASE OF REMOVAL AND DISPOSAL OF THE OLD MECHANICAL INSULATION  PROP-
ERTY, COST SHALL MEAN THIRTY PERCENT OF THE COST FOR PURCHASE OF THE NEW
MECHANICAL  INSULATION  PROPERTY,  AND  PROVIDED,  FURTHER,  THAT IF THE
TAXPAYER CLAIMS THE EXCLUSION PROVIDED BY THIS SUBPARAGRAPH THE TAXPAYER
SHALL EXCLUDE ALL AMOUNTS INCLUDED IN THE EXCLUSION COMPUTATION PURSUANT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07108-01-3
              

A. 4414                             2

TO THIS SUBPARAGRAPH  FROM  THE  COMPUTATION  OF  ANY  OTHER  EXCLUSION,
DEDUCTION  OR  CREDIT  PROVIDED BY THIS CHAPTER. THE TERM COST SHALL NOT
INCLUDE ANY AMOUNT PROPERLY ATTRIBUTABLE TO MAINTENANCE.
  (III)  "MECHANICAL  INSULATION PROPERTY" SHALL MEAN INSULATION MATERI-
ALS, FACINGS AND ACCESSORY PRODUCTS (I) PLACED IN SERVICE IN  CONNECTION
WITH  A  MECHANICAL SYSTEM WHICH IS LOCATED IN THE STATE OF NEW YORK AND
IS OF A CHARACTER SUBJECT TO AN ALLOWANCE  FOR  DEPRECIATION;  AND  (II)
UTILIZED  FOR  THERMAL, ACOUSTICAL AND PERSONNEL SAFETY REQUIREMENTS FOR
MECHANICAL PIPING AND EQUIPMENT, HOT AND COLD APPLICATIONS, AND HEATING,
VENTING AND AIR CONDITIONING APPLICATIONS WHICH CAN BE USED IN A VARIETY
OF FACILITIES.
  (B) FOR THE PURPOSES OF THIS SUBPARAGRAPH,  ENERGY  SAVINGS  SHALL  BE
COMPUTED  PURSUANT TO THE REGULATIONS PROMULGATED BY THE COMMISSIONER OF
THE DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION,  IN  CONSULTATION  WITH
NYSERDA.
  S 2. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 27 to read as follows:
  (27)  THE  APPLICABLE  PERCENTAGE OF THE COST OF MECHANICAL INSULATION
PROPERTY INSTALLED IN REAL PROPERTY LOCATED IN  THIS  STATE  DURING  THE
TAXABLE YEAR.
  (A)  DEFINITIONS.  FOR PURPOSES OF THIS PARAGRAPH, THE FOLLOWING DEFI-
NITIONS SHALL APPLY:
  (I) "APPLICABLE PERCENTAGE" SHALL MEAN THE LESSER OF:
  (I) THIRTY PERCENT OF THE COST OF THE MECHANICAL  INSULATION  PROPERTY
PLACED IN SERVICE; OR
  (II)  THE  EXCESS,  IF  ANY, OF (A) THE ENERGY SAVINGS, EXPRESSED AS A
PERCENTAGE, OBTAINED BY PLACING SUCH MECHANICAL INSULATION  PROPERTY  IN
SERVICE  IN  CONNECTION  WITH  A  MECHANICAL SYSTEM, OVER (B) THE ENERGY
SAVINGS, EXPRESSED AS A PERCENTAGE, SUCH PROPERTY IS REQUIRED TO MEET BY
STANDARD 90.1-2007, DEVELOPED AND PUBLISHED BY THE AMERICAN  SOCIETY  OF
HEATING, REFRIGERATING AND AIR-CONDITIONING ENGINEERS.
  (II)  "COST"  SHALL  MEAN (I) THE AMOUNTS PAID DURING THE TAXABLE YEAR
FOR THE PURCHASE OF MECHANICAL INSULATION  PROPERTY  THAT  IS  INSTALLED
DURING  THE TAXABLE YEAR, AND (II) FOR LABOR COSTS PAID DURING THE TAXA-
BLE YEAR THAT ARE PROPERLY ALLOCABLE TO THE  PREPARATION,  ASSEMBLY  AND
INSTALLATION  OF  MECHANICAL  INSULATION PROPERTY, PROVIDED, HOWEVER, IN
THE CASE OF REMOVAL AND DISPOSAL OF THE OLD MECHANICAL INSULATION  PROP-
ERTY, COST SHALL MEAN THIRTY PERCENT OF THE COST FOR PURCHASE OF THE NEW
MECHANICAL  INSULATION  PROPERTY,  AND  PROVIDED,  FURTHER,  THAT IF THE
TAXPAYER CLAIMS THE EXCLUSION PROVIDED BY THIS SUBPARAGRAPH THE TAXPAYER
SHALL EXCLUDE ALL AMOUNTS INCLUDED IN THE EXCLUSION COMPUTATION PURSUANT
TO THIS SUBPARAGRAPH  FROM  THE  COMPUTATION  OF  ANY  OTHER  EXCLUSION,
DEDUCTION  OR  CREDIT  PROVIDED BY THIS CHAPTER. THE TERM COST SHALL NOT
INCLUDE ANY AMOUNT PROPERLY ATTRIBUTABLE TO MAINTENANCE.
  (III) "MECHANICAL INSULATION PROPERTY" SHALL MEAN  INSULATION  MATERI-
ALS,  FACINGS AND ACCESSORY PRODUCTS (I) PLACED IN SERVICE IN CONNECTION
WITH A MECHANICAL SYSTEM WHICH IS LOCATED IN THE STATE OF NEW  YORK  AND
IS  OF  A  CHARACTER  SUBJECT TO AN ALLOWANCE FOR DEPRECIATION; AND (II)
UTILIZED FOR THERMAL, ACOUSTICAL AND PERSONNEL SAFETY  REQUIREMENTS  FOR
MECHANICAL PIPING AND EQUIPMENT, HOT AND COLD APPLICATIONS, AND HEATING,
VENTING AND AIR CONDITIONING APPLICATIONS WHICH CAN BE USED IN A VARIETY
OF FACILITIES.
  (B)  FOR  THE  PURPOSES  OF  THIS  PARAGRAPH,  ENERGY SAVINGS SHALL BE
COMPUTED PURSUANT TO THE REGULATIONS PROMULGATED BY THE COMMISSIONER  OF
THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION,  IN  CONSULTATION WITH
NYSERDA.

A. 4414                             3

  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law and shall apply to taxable  years  commencing
on or after such effective date; provided, however, that effective imme-
diately, the addition, amendment and/or repeal of any rule or regulation
necessary  for  the implementation of this act on its effective date are
authorized and directed to be made  and  completed  on  or  before  such
effective date.