I 
113TH CONGRESS 
1ST SESSION 
H. R. 184 
To amend the Internal Revenue Code of 1986 to provide a tax incentive 
for the installation and maintenance of mechanical insulation property. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 4, 2013 
Mr. GRIMM (for himself and Mr. BISHOP of New York) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a tax incentive for the installation and maintenance of 
mechanical insulation property. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Mechanical Insulation 
Installation Incentive Act of 2013’’. 
SEC. 2. EXPENSING OF MECHANICAL INSULATION PROP-
ERTY. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of subtitle A of the Internal Revenue Code of 1986 
(relating to itemized deductions for individuals and cor-
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porations) is amended by inserting after section 179E the 
following new section: 
‘‘SEC. 179F. MECHANICAL INSULATION PROPERTY. 
‘‘(a) TREATMENT AS EXPENSES.—In addition to any 
other deduction in this subtitle, there shall be allowed as 
a deduction an amount equal to the applicable percentage 
of the cost of mechanical insulation property placed in 
service during the taxable year. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
subsection (a)— 
‘‘(1) IN GENERAL.—The term ‘applicable per-
centage’ means the lesser of— 
‘‘(A) 30 percent, and 
‘‘(B) the reduction in energy loss (ex-
pressed as a percentage) from the installed me-
chanical insulation property compared to ref-
erence mechanical insulation property which 
meets the minimum requirements of ASHRAE 
standard 90.1–2007. 
‘‘(2) SPECIAL
RULE
RELATING
TO
MAINTE-
NANCE.—In the case of mechanical insulation prop-
erty placed in service as a replacement for insulation 
property— 
‘‘(A) paragraph (1)(B) shall not apply, and 
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‘‘(B) the cost of such property shall be 
treated as an expense for which a deduction is 
allowed under section 162 instead of being 
treated as depreciable for purposes of the de-
duction provided by section 167. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) MECHANICAL
INSULATION
PROPERTY.— 
The term ‘mechanical insulation property’ means in-
sulation materials, facings, and accessory products— 
‘‘(A) placed in service in connection with a 
mechanical system which— 
‘‘(i) is located in the United States, 
and 
‘‘(ii) is of a character subject to an al-
lowance for depreciation, and 
‘‘(B) utilized for thermal requirements for 
mechanical piping and equipment, hot and cold 
applications, and heating, venting and air con-
ditioning applications which can be used in a 
variety of facilities. 
‘‘(2) COST.—The cost of mechanical insulation 
property includes— 
‘‘(A) the amounts paid or incurred for the 
installation of such property for that incre-
mental 
portion 
above 
the 
minimums 
in 
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