I 
115TH CONGRESS 
1ST SESSION H. R. 3349 
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 
JULY 20, 2017 
Ms. SA´NCHEZ (for herself, Mr. REED, Mr. RYAN of Ohio, and Mr. MEEHAN) 
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 2017’’. 
SEC. 2. EXPENSING OF MECHANICAL INSULATION PROP-
ERTY. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
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itemized deductions for individuals and corporations) 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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ASHRAE standard 90.1–2007 and the total in-
sulation cost for maintenance applications, 
‘‘(B) in the case of removal and disposal of 
the old mechanical insulation property, 10 per-
cent of the cost of the new mechanical insula-
tion property (determined without regard to 
this subparagraph), and 
‘‘(C) expenditures for labor costs properly 
allocable to the preparation, assembly, and in-
stallation of mechanical insulation property. 
‘‘(d) COORDINATION.—Subsection (a) shall not apply 
to the cost of mechanical insulation property which is 
taken into account under section 179D or which, but for 
subsection (b) of section 179D, would be taken into ac-
count under such section. 
‘‘(e) ALLOCATION OF DEDUCTION FOR TAX-EXEMPT 
PROPERTY.—In the case of mechanical insulation prop-
erty installed on or in property owned by an entity de-
scribed in paragraph (3) or (4) of section 50(b), the per-
son who is the primary contractor for the installation of 
such property shall be treated as the taxpayer that placed 
such property in service. 
‘‘(f) CERTIFICATION.—For purposes of this section, 
energy savings shall be certified under regulations or other 
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guidance provided by the Secretary, in consultation with 
the Secretary of Energy. 
‘‘(g) TERMINATION.—This section shall not apply to 
any property placed in service after the end of the 5-year 
period beginning on the date of the enactment of this sec-
tion.’’. 
(b) DEDUCTION
FOR CAPITAL EXPENDITURES.— 
Section 263(a)(1) of such Code (relating to capital ex-
penditures) is amended by striking ‘‘or’’ at the end of sub-
paragraph (K), by striking the period at the end of para-
graph (L) and inserting ‘‘, or’’, and by adding at the end 
the following new subparagraph: 
‘‘(M) expenditures for which a deduction is 
allowed under section 179F.’’. 
(c) TECHNICAL AND CLERICAL AMENDMENTS.— 
(1) Section 312(k)(3)(B) of such Code is 
amended by striking ‘‘or 179E’’ each place it ap-
pears in the text or heading thereof and inserting 
‘‘179E, or 179F’’. 
(2) Paragraphs (2)(C) and (3)(C) of section 
1245(a) of such Code are each amended by inserting 
‘‘179F,’’ after ‘‘179E,’’. 
(3) The table of sections for part VI of sub-
chapter B of chapter 1 of such Code is amended by 
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inserting after the item relating to section 179E the 
following new item: 
‘‘Sec. 179F. Mechanical insulation property.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of enactment of this Act. 
Æ 
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