Bill Text: NY S00950 | 2017-2018 | General Assembly | Introduced

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Bill Title: Provides a tax deduction for the installation of mechanical insulation property in any taxable year; provides that such deduction shall be for the lesser of 30% of the cost of such property or the excess in energy savings provided by such property.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S00950 Detail]

Download: New_York-2017-S00950-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                           950
                               2017-2018 Regular Sessions
                    IN SENATE
                                     January 5, 2017
                                       ___________
        Introduced  by  Sen.  FUNKE  -- 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:
     1    Section 1. Paragraph (a) of subdivision 9 of section 208  of  the  tax
     2  law is amended by adding a new subparagraph 20 to read as follows:
     3    (20)  The  applicable  percentage of the cost of mechanical insulation
     4  property installed in real property located in  this  state  during  the
     5  taxable year.
     6    (A)  Definitions.  For  purposes  of  this subparagraph, the following
     7  definitions shall apply: (i)  "Applicable  percentage"  shall  mean  the
     8  lesser  of:  (I) thirty percent of the cost of the mechanical insulation
     9  property placed in service; or (II) the excess, if any, of (a) the ener-
    10  gy savings, expressed as a percentage, obtained by placing such  mechan-
    11  ical  insulation  property  in  service  in connection with a mechanical
    12  system, over (b) the energy savings, expressed  as  a  percentage,  such
    13  property  is  required  to  meet  by  standard  90.1-2007, developed and
    14  published by the American society of heating, refrigerating and air-con-
    15  ditioning engineers.
    16    (ii) "Cost" shall mean (I) the amounts paid during  the  taxable  year
    17  for  the  purchase  of  mechanical insulation property that is installed
    18  during the taxable year and (II) labor costs  paid  during  the  taxable
    19  year  that  are  properly  allocable  to  the  preparation, assembly and
    20  installation of mechanical insulation property;  provided,  however,  in
    21  the  case of removal and disposal of the old mechanical insulation prop-
    22  erty, cost shall mean thirty percent of the cost for purchase of the new
    23  mechanical insulation property,  and  provided,  further,  that  if  the
    24  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.
                                                                   LBD02482-01-7
        S. 950                              2
     1  shall exclude all amounts included in the exclusion computation pursuant
     2  to  this  subparagraph  from  the  computation  of  any other exclusion,
     3  deduction or credit provided by this chapter. The term  cost  shall  not
     4  include any amount properly attributable to maintenance.
     5    (iii)  "Mechanical  insulation property" shall mean insulation materi-
     6  als, facings and accessory products (I) placed in service in  connection
     7  with  a  mechanical system which is located in the state of New York and
     8  is of a character subject to an allowance  for  depreciation;  and  (II)
     9  utilized  for  thermal, acoustical and personnel safety requirements for
    10  mechanical piping and equipment, hot and cold applications, and heating,
    11  venting and air conditioning applications which can be used in a variety
    12  of facilities.
    13    (B) For the purposes of this subparagraph,  energy  savings  shall  be
    14  computed  pursuant to the regulations promulgated by the commissioner of
    15  the department  of  environmental  conservation,  in  consultation  with
    16  NYSERDA.
    17    § 2. Subsection (c) of section 612 of the tax law is amended by adding
    18  a new paragraph 27 to read as follows:
    19    (27)  The  applicable  percentage of the cost of mechanical insulation
    20  property installed in real property located in  this  state  during  the
    21  taxable year.
    22    (A)  Definitions.  For purposes of this paragraph, the following defi-
    23  nitions shall apply:
    24    (i) "Applicable percentage" shall mean the lesser of:
    25    (I) thirty percent of the cost of the mechanical  insulation  property
    26  placed in service; or
    27    (II)  the  excess,  if  any, of (a) the energy savings, expressed as a
    28  percentage, obtained by placing such mechanical insulation  property  in
    29  service  in  connection  with  a  mechanical system, over (b) the energy
    30  savings, expressed as a percentage, such property is required to meet by
    31  standard 90.1-2007, developed and published by the American  society  of
    32  heating, refrigerating and air-conditioning engineers.
    33    (ii)  "Cost"  shall  mean (I) the amounts paid during the taxable year
    34  for the purchase of mechanical insulation  property  that  is  installed
    35  during  the taxable year, and (II) for labor costs paid during the taxa-
    36  ble year that are properly allocable to the  preparation,  assembly  and
    37  installation  of  mechanical  insulation property, provided, however, in
    38  the case of removal and disposal of the old mechanical insulation  prop-
    39  erty, cost shall mean thirty percent of the cost for purchase of the new
    40  mechanical  insulation  property,  and  provided,  further,  that if the
    41  taxpayer claims the exclusion provided by this subparagraph the taxpayer
    42  shall exclude all amounts included in the exclusion computation pursuant
    43  to this subparagraph  from  the  computation  of  any  other  exclusion,
    44  deduction  or  credit  provided by this chapter. The term cost shall not
    45  include any amount properly attributable to maintenance.
    46    (iii) "Mechanical insulation property" shall mean  insulation  materi-
    47  als,  facings and accessory products (I) placed in service in connection
    48  with a mechanical system which is located in the state of New  York  and
    49  is  of  a  character  subject to an allowance for depreciation; and (II)
    50  utilized for thermal, acoustical and personnel safety  requirements  for
    51  mechanical piping and equipment, hot and cold applications, and heating,
    52  venting and air conditioning applications which can be used in a variety
    53  of facilities.
    54    (B)  For  the  purposes  of  this  paragraph,  energy savings shall be
    55  computed pursuant to the regulations promulgated by the commissioner  of
        S. 950                              3
     1  the  department  of  environmental  conservation,  in  consultation with
     2  NYSERDA.
     3    § 3. This act shall take effect on the one hundred twentieth day after
     4  it  shall  have become a law and shall apply to taxable years commencing
     5  on or after such effective date; provided, however, that effective imme-
     6  diately, the addition, amendment and/or repeal of any rule or regulation
     7  necessary for the implementation of this act on its effective  date  are
     8  authorized  and  directed  to  be  made  and completed on or before such
     9  effective date.