Tax Credit for Labor Costs of Installing Mechanical Insulation
This bill introduces a new tax credit for businesses covering 10% of the labor costs associated with installing mechanical insulation property in existing systems. The goal is to incentivize companies to upgrade their infrastructure to reduce energy loss, potentially leading to lower operating costs and greater energy efficiency in the industrial and commercial sectors. The credit applies to costs incurred from January 1, 2024, through the end of 2028.
Key points
New Tax Credit: Businesses can claim a 10% credit on labor costs for installing mechanical insulation property.
Eligibility Requirements: The insulation must be installed in mechanical systems that have been in service for at least one year and must meet minimum energy efficiency standards (Reference Standard 90.1).
Financial Benefit: The credit aims to reduce the financial burden of energy modernization for businesses, supporting energy savings and heat loss reduction.
Time Limit: The credit is available for costs paid or incurred between January 1, 2024, and December 31, 2028.
Expired
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