Mechanical Insulation Tax Incentives Included in House Legislation

After much effort and coordination, the U.S. House of Representatives passed an infrastructure bill, which includes mechanical insulation tax incentives.

Passed mostly along party lines, the $1.5 trillion Moving Forward Act will not be brought to vote in the Senate. 

Despite this development, the HFIAW is encouraged mechanical insulation language was put into this piece of legislation.

The Insulators Union has long lobbied for language to include tax incentives for mechanical insulation in bills, which can help reduce the emissions of greenhouse gases.

During the debate processes, the Joint Committee on Taxation contacted the Insulators Union for information to complete an economic and budgetary analysis.

Insulators Union Government Affairs Director Chip Gardiner described the tax incentives as a way to offset the investment of installing mechanical insulation.

“The provision provides a credit for up to 10 percent of the labor costs incurred by a taxpayer in installing mechanical insulation properly into a mechanical system, which was originally placed in service not less than one year before the date on which such mechanical insulation is properly installed,” he said.

Gardiner noted other provisions within the legislation, which should create jobs for members of the Insulators Union. For example, energy efficiency funds are available for public buildings, schools and hospitals.

The bill is written as a framework for what Democrats want to do if they flip the Senate and take back the White House in the November election.

The Insulators Union thanks Rep. Linda Sanchez (D-Calf.) and her staff for their leadership and hard work to get Mechanical Insulation tax incentives included in this infrastructure bill.