S T A T E O F N E W Y O R K
________________________________________________________________________
691
2015-2016 Regular Sessions
I N A S S E M B L Y
January 7, 2015
___________
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 20 to read as follows:
(20) 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.
LBD04634-01-5
A. 691 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. 691 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.