Bill Text: NY A06679 | 2011-2012 | General Assembly | Introduced

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Bill Title: Provides a tax deduction for the installation of mechanical insulation property in any taxable year; provides that such deduction shall be for the lesser of 30% of the cost of such property or the excess in energy savings provided by such property.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2012-01-04 - referred to ways and means [A06679 Detail]

Download: New_York-2011-A06679-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6679
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                    March 24, 2011
                                      ___________
       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:
    1    Section 1.  Subsection (c) of section 612 of the tax law is amended by
    2  adding a new paragraph 27 to read as follows:
    3    (27)  THE  APPLICABLE  PERCENTAGE OF THE COST OF MECHANICAL INSULATION
    4  PROPERTY PLACED IN SERVICE DURING THE TAXABLE YEAR.
    5    (A) FOR THE PURPOSES OF THIS PARAGRAPH:
    6    (I) "APPLICABLE PERCENTAGE" SHALL MEAN THE LESSER OF:
    7    (I) THIRTY PERCENT OF THE COST OF THE MECHANICAL  INSULATION  PROPERTY
    8  PLACED IN SERVICE; OR
    9    (II)  THE  EXCESS,  IF  ANY, OF (A) THE ENERGY SAVINGS, EXPRESSED AS A
   10  PERCENTAGE, OBTAINED BY PLACING SUCH MECHANICAL INSULATION  PROPERTY  IN
   11  SERVICE  IN  CONNECTION  WITH  A  MECHANICAL SYSTEM, OVER (B) THE ENERGY
   12  SAVINGS, EXPRESSED AS A PERCENTAGE, SUCH PROPERTY IS REQUIRED TO MEET BY
   13  STANDARD 90.1-2007, DEVELOPED AND PUBLISHED BY THE AMERICAN  SOCIETY  OF
   14  HEATING, REFRIGERATING AND AIR-CONDITIONING ENGINEERS.
   15    (II) "COST" SHALL INCLUDE:
   16    (I)  THE AMOUNTS PAID OR INCURRED FOR THE INSTALLATION OF SUCH MECHAN-
   17  ICAL INSULATION PROPERTY;
   18    (II) EXPENDITURES FOR LABOR COSTS PROPERLY ALLOCABLE TO  THE  PREPARA-
   19  TION, ASSEMBLY AND INSTALLATION OF MECHANICAL INSULATION PROPERTY; AND
   20    (III)  IN THE CASE OF REMOVAL AND DISPOSAL OF THE OLD MECHANICAL INSU-
   21  LATION PROPERTY, THIRTY PERCENT OF THE COST OF THE NEW MECHANICAL  INSU-
   22  LATION  PROPERTY, DETERMINED WITHOUT REGARD TO THE TAX CREDIT AUTHORIZED
   23  BY THIS SUBSECTION.
   24    (III) "MECHANICAL INSULATION PROPERTY" SHALL MEAN  INSULATION  MATERI-
   25  ALS, FACINGS AND ACCESSORY PRODUCTS:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09957-02-1
       A. 6679                             2
    1    (I)  PLACED IN SERVICE IN CONNECTION WITH A MECHANICAL SYSTEM WHICH IS
    2  LOCATED IN THE STATE OF NEW YORK AND IS OF A  CHARACTER  SUBJECT  TO  AN
    3  ALLOWANCE FOR DEPRECIATION; AND
    4    (II)  UTILIZED  FOR  THERMAL, ACOUSTICAL AND PERSONNEL SAFETY REQUIRE-
    5  MENTS FOR MECHANICAL PIPING AND EQUIPMENT, HOT  AND  COLD  APPLICATIONS,
    6  AND HEATING, VENTING AND AIR CONDITIONING APPLICATIONS WHICH CAN BE USED
    7  IN VARIETY OF FACILITIES.
    8    (B) IN THE CASE OF MECHANICAL INSULATION PROPERTY PLACED IN SERVICE AS
    9  A  REPLACEMENT  FOR INSULATION PROPERTY, SUBCLAUSE (II) OF CLAUSE (I) OF
   10  SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE APPLIED  WITHOUT  REGARD  TO
   11  ITEM (B) THEREOF.
   12    (C)  THE  AMOUNT OF ANY OTHER CREDIT OR DEDUCTION ALLOWABLE UNDER THIS
   13  CHAPTER FOR ANY COST OF MECHANICAL INSULATION PROPERTY  WHICH  IS  TAKEN
   14  INTO  ACCOUNT UNDER PARAGRAPH ONE OF THIS SUBSECTION SHALL BE REDUCED BY
   15  THE AMOUNT OF SUCH COST SO TAKEN INTO ACCOUNT; PROVIDED,  HOWEVER,  THAT
   16  THIS  PARAGRAPH  SHALL  NOT APPLY TO ANY AMOUNT PROPERLY ATTRIBUTABLE TO
   17  MAINTENANCE.
   18    (D) IN THE CASE OF MECHANICAL INSULATION PROPERTY INSTALLED ON  OR  IN
   19  PROPERTY  OWNED  BY  AN  ENTITY  DESCRIBED IN PARAGRAPH THREE OR FOUR OF
   20  SECTION 50(B) OF THE INTERNAL REVENUE CODE, THE PERSON WHO IS THE PRIMA-
   21  RY CONTRACTOR FOR THE INSTALLATION OF SUCH PROPERTY SHALL BE TREATED  AS
   22  THE TAXPAYER THAT PLACED SUCH PROPERTY IN SERVICE.
   23    (E)  FOR  THE  PURPOSES  OF  THIS  SUBSECTION, ENERGY SAVINGS SHALL BE
   24  CERTIFIED UNDER REGULATIONS OR OTHER GUIDANCE PROVIDED BY THE DEPARTMENT
   25  OF ENVIRONMENTAL CONSERVATION.
   26    S 2. This act shall take effect on the one hundred twentieth day after
   27  it shall have become a law and shall apply to taxable  years  commencing
   28  on or after such effective date; provided, however, that effective imme-
   29  diately, the addition, amendment and/or repeal of any rule or regulation
   30  necessary  for  the implementation of this act on its effective date are
   31  authorized and directed to be made  and  completed  on  or  before  such
   32  effective date.