S T A T E   O F   N E W   Y O R K
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                                  4192

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 23, 2011
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

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.  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 PLACED IN SERVICE DURING THE TAXABLE YEAR.
  (A) FOR THE PURPOSES OF THIS PARAGRAPH:
  (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 INCLUDE:
  (I) THE AMOUNTS PAID OR INCURRED FOR THE INSTALLATION OF SUCH  MECHAN-
ICAL INSULATION PROPERTY;
  (II)  EXPENDITURES  FOR LABOR COSTS PROPERLY ALLOCABLE TO THE PREPARA-
TION, ASSEMBLY AND INSTALLATION OF MECHANICAL INSULATION PROPERTY; AND
  (III) IN THE CASE OF REMOVAL AND DISPOSAL OF THE OLD MECHANICAL  INSU-
LATION  PROPERTY, THIRTY PERCENT OF THE COST OF THE NEW MECHANICAL INSU-
LATION PROPERTY, DETERMINED WITHOUT REGARD TO THE TAX CREDIT  AUTHORIZED
BY THIS SUBSECTION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09957-02-1

              

S. 4192                             2

  (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 REQUIRE-
MENTS FOR MECHANICAL PIPING AND EQUIPMENT, HOT  AND  COLD  APPLICATIONS,
AND HEATING, VENTING AND AIR CONDITIONING APPLICATIONS WHICH CAN BE USED
IN VARIETY OF FACILITIES.
  (B) IN THE CASE OF MECHANICAL INSULATION PROPERTY PLACED IN SERVICE AS
A  REPLACEMENT  FOR INSULATION PROPERTY, SUBCLAUSE (II) OF CLAUSE (I) OF
SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE APPLIED  WITHOUT  REGARD  TO
ITEM (B) THEREOF.
  (C)  THE  AMOUNT OF ANY OTHER CREDIT OR DEDUCTION ALLOWABLE UNDER THIS
CHAPTER FOR ANY COST OF MECHANICAL INSULATION PROPERTY  WHICH  IS  TAKEN
INTO  ACCOUNT UNDER PARAGRAPH ONE OF THIS SUBSECTION SHALL BE REDUCED BY
THE AMOUNT OF SUCH COST SO TAKEN INTO ACCOUNT; PROVIDED,  HOWEVER,  THAT
THIS  PARAGRAPH  SHALL  NOT APPLY TO ANY AMOUNT PROPERLY ATTRIBUTABLE TO
MAINTENANCE.
  (D) IN THE CASE OF MECHANICAL INSULATION PROPERTY INSTALLED ON  OR  IN
PROPERTY  OWNED  BY  AN  ENTITY  DESCRIBED IN PARAGRAPH THREE OR FOUR OF
SECTION 50(B) OF THE INTERNAL REVENUE CODE, THE PERSON WHO IS THE PRIMA-
RY CONTRACTOR FOR THE INSTALLATION OF SUCH PROPERTY SHALL BE TREATED  AS
THE TAXPAYER THAT PLACED SUCH PROPERTY IN SERVICE.
  (E)  FOR  THE  PURPOSES  OF  THIS  SUBSECTION, ENERGY SAVINGS SHALL BE
CERTIFIED UNDER REGULATIONS OR OTHER GUIDANCE PROVIDED BY THE DEPARTMENT
OF ENVIRONMENTAL CONSERVATION.
  S 2. 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.