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Gillibrand, Johanns Introduces Bipartisan Bill to Encourage Use of Mechanical Insulation -- Help Businesses Cut Energy Costs, Create New Green Jobs

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Date:
Location: Washington, DC

U.S. Senators Kirsten Gillibrand (D-NY) and Mike Johanns (R-NE) today introduced bipartisan legislation to help businesses cut energy costs and create new, green jobs. The Mechanical Insulation Installation Incentive Act would create a tax credit for commercial buildings and industrial and manufacturing facilities, including power plants, refineries, hospitals, schools, and universities to increase the use of mechanical insulation.

"Investment in energy efficiency is a vital part of our economic recovery," Senator Gillibrand said. "This legislation would make mechanical insulation more accessible and affordable -- helping to cut harmful emissions, improve the environment, lower energy bills, and create good-paying jobs right here at home. This program makes good sense for our economy and environment."

Mechanical insulation is a proven energy efficiency tool and emission reduction technology that improves personnel safety and reduces costs while also creating tens of thousands of green jobs. While incentives have been developed for walls and roofing, lighting, weatherization, and other energy efficiency option, there are no existing tax incentives tailored for mechanical insulation. Mechanical insulation includes all thermal, acoustical and personnel safety requirements for mechanical piping and equipment and Heating, Ventilating & Air Conditioning (HVAC) applications.

The Mechanical Insulation Installation Incentive Act would create a 30 percent tax deduction to encourage commercial and industrial entities to include mechanical insulation in new construction or retrofit projects. The legislation would allow businesses to increase or accelerate the depreciation deduction for the incremental insulation cost based on the percentage of energy saved above the minimum requirements. This initiative would support the development of 89,000-plus sustainable jobs for skilled craft personnel to install and maintain the mechanical insulation systems.


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