Bill · H.R. 2463· House(119-HR-2463)
Mechanical Insulation Installation Incentive Act of 2025
- Introduced
- 3/27/2025
- Last activity
- 3/27/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Linda Sánchez
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The Mechanical Insulation Installation Incentive Act of 2025 aims to amend the Internal Revenue Code of 1986. It proposes a new tax credit for the labor costs associated with installing mechanical insulation property. This credit would equal 10 percent of the labor costs paid or incurred during a taxable year. The property must be installed on a mechanical system located in the United States that was placed in service at least one year prior. Furthermore, the installation must result in a reduction of energy loss and meet specific standards. This provision is set to expire after December 31, 2028.
Yes· 3 of 8
Does this cut taxes for small businesses?+3
The credit provides a tax incentive for labor costs related to energy-efficient upgrades.
Would business owners be better off under this?+3
The credit provides a direct financial incentive for businesses to invest in energy-efficient infrastructure.
Does this cut the pollution that drives climate change?+3
The credit encourages mechanical insulation, which reduces energy loss and improves efficiency.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Credit for Labor Costs: Taxpayers can receive a credit equal to 10 percent of the labor costs paid for installing mechanical insulation property (Section 2(a)).
-
Energy Efficiency: The credit applies to installations that result in a reduction in energy loss from a mechanical system (Section 2(b)(2)(A)(iii)).
Potential Negative Impacts for People
-
Limited Duration: The credit will not apply to any labor costs paid or incurred after December 31, 2028 (Section 2(a)).
-
Reduced Deductions: Taxpayers are not allowed to take a deduction for the portion of labor costs that is covered by the credit (Section 2(c)(1)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Reduces Small Business Taxes+3Improves Small Business Support+2Increases Job Creation+2Improves Economic Growth+1
- Demographic And Interest Groups
- Good For Business Owners+3Good For Union Workers+2
- Environment Energy And Infrastructure
- Reduces Carbon Emissions+3Improves Environmental Protections+1
- 3/27/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Brian FitzpatrickRepublican · Pennsylvania