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

                                  2499

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 18, 2013
                               ___________

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. Paragraph (a) of subdivision 9 of section 208  of  the  tax
law is amended by adding a new subparagraph 18 to read as follows:
  (18)  THE  APPLICABLE  PERCENTAGE OF THE COST OF MECHANICAL INSULATION
PROPERTY INSTALLED IN REAL PROPERTY LOCATED IN  THIS  STATE  DURING  THE
TAXABLE YEAR.
  (A)  DEFINITIONS.  FOR  PURPOSES  OF  THIS SUBPARAGRAPH, THE FOLLOWING
DEFINITIONS SHALL APPLY: (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 ENER-
GY SAVINGS, EXPRESSED AS A PERCENTAGE, OBTAINED BY PLACING SUCH  MECHAN-
ICAL  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-CON-
DITIONING ENGINEERS.
  (II) "COST" SHALL MEAN (I) THE AMOUNTS PAID DURING  THE  TAXABLE  YEAR
FOR  THE  PURCHASE  OF  MECHANICAL INSULATION PROPERTY THAT IS INSTALLED
DURING THE TAXABLE YEAR AND (II) LABOR COSTS  PAID  DURING  THE  TAXABLE
YEAR  THAT  ARE  PROPERLY  ALLOCABLE  TO  THE  PREPARATION, ASSEMBLY AND
INSTALLATION OF MECHANICAL INSULATION PROPERTY;  PROVIDED,  HOWEVER,  IN
THE  CASE OF REMOVAL AND DISPOSAL OF THE OLD MECHANICAL INSULATION PROP-
ERTY, COST SHALL MEAN THIRTY PERCENT OF THE COST FOR PURCHASE OF THE NEW
MECHANICAL INSULATION PROPERTY,  AND  PROVIDED,  FURTHER,  THAT  IF  THE
TAXPAYER CLAIMS THE EXCLUSION PROVIDED BY THIS SUBPARAGRAPH THE TAXPAYER

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07108-01-3
              

S. 2499                             2

SHALL EXCLUDE ALL AMOUNTS INCLUDED IN THE EXCLUSION COMPUTATION PURSUANT
TO  THIS  SUBPARAGRAPH  FROM  THE  COMPUTATION  OF  ANY OTHER EXCLUSION,
DEDUCTION OR CREDIT PROVIDED BY THIS CHAPTER. THE TERM  COST  SHALL  NOT
INCLUDE ANY AMOUNT PROPERLY ATTRIBUTABLE TO MAINTENANCE.
  (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 REQUIREMENTS FOR
MECHANICAL PIPING AND EQUIPMENT, HOT AND COLD APPLICATIONS, AND HEATING,
VENTING AND AIR CONDITIONING APPLICATIONS WHICH CAN BE USED IN A VARIETY
OF FACILITIES.
  (B) FOR THE PURPOSES OF THIS SUBPARAGRAPH,  ENERGY  SAVINGS  SHALL  BE
COMPUTED  PURSUANT TO THE REGULATIONS PROMULGATED BY THE COMMISSIONER OF
THE DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION,  IN  CONSULTATION  WITH
NYSERDA.
  S 2. 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 INSTALLED IN REAL PROPERTY LOCATED IN  THIS  STATE  DURING  THE
TAXABLE YEAR.
  (A)  DEFINITIONS.  FOR PURPOSES OF THIS PARAGRAPH, THE FOLLOWING DEFI-
NITIONS SHALL APPLY:
  (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  MEAN (I) THE AMOUNTS PAID DURING THE TAXABLE YEAR
FOR THE PURCHASE OF MECHANICAL INSULATION  PROPERTY  THAT  IS  INSTALLED
DURING  THE TAXABLE YEAR, AND (II) FOR LABOR COSTS PAID DURING THE TAXA-
BLE YEAR THAT ARE PROPERLY ALLOCABLE TO THE  PREPARATION,  ASSEMBLY  AND
INSTALLATION  OF  MECHANICAL  INSULATION PROPERTY, PROVIDED, HOWEVER, IN
THE CASE OF REMOVAL AND DISPOSAL OF THE OLD MECHANICAL INSULATION  PROP-
ERTY, COST SHALL MEAN THIRTY PERCENT OF THE COST FOR PURCHASE OF THE NEW
MECHANICAL  INSULATION  PROPERTY,  AND  PROVIDED,  FURTHER,  THAT IF THE
TAXPAYER CLAIMS THE EXCLUSION PROVIDED BY THIS SUBPARAGRAPH THE TAXPAYER
SHALL EXCLUDE ALL AMOUNTS INCLUDED IN THE EXCLUSION COMPUTATION PURSUANT
TO THIS SUBPARAGRAPH  FROM  THE  COMPUTATION  OF  ANY  OTHER  EXCLUSION,
DEDUCTION  OR  CREDIT  PROVIDED BY THIS CHAPTER. THE TERM COST SHALL NOT
INCLUDE ANY AMOUNT PROPERLY ATTRIBUTABLE TO MAINTENANCE.
  (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  REQUIREMENTS  FOR
MECHANICAL PIPING AND EQUIPMENT, HOT AND COLD APPLICATIONS, AND HEATING,
VENTING AND AIR CONDITIONING APPLICATIONS WHICH CAN BE USED IN A VARIETY
OF FACILITIES.
  (B)  FOR  THE  PURPOSES  OF  THIS  PARAGRAPH,  ENERGY SAVINGS SHALL BE
COMPUTED PURSUANT TO THE REGULATIONS PROMULGATED BY THE COMMISSIONER  OF

S. 2499                             3

THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION,  IN  CONSULTATION WITH
NYSERDA.
  S 3. 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.