Sen. Edward D. Maloney

Filed: 3/15/2011

 

 


 

 


 
09700SB1362sam001LRB097 05997 HLH 51663 a

1
AMENDMENT TO SENATE BILL 1362

2    AMENDMENT NO. ______. Amend Senate Bill 1362 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Income Tax Act is amended by
5adding Section 221 as follows:
 
6    (35 ILCS 5/221 new)
7    Sec. 221. Credit for mechanical insulation. For each
8taxable year beginning on or after January 1, 2011, each
9taxpayer is entitled to a credit against the tax imposed by
10subsections (a) and (b) of Section 201 of this Act in an amount
11equal to the applicable percentage of the cost of mechanical
12insulation property placed in service in the State during the
13taxable year.
14    In no event shall a credit under this Section reduce the
15taxpayer's liability to less than zero. If the amount of the
16credit exceeds the tax liability for the year, the excess may

 

 

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1be carried forward and applied to the tax liability of the 5
2taxable years following the excess credit year. The tax credit
3shall be applied to the earliest year for which there is a tax
4liability. If there are credits for more than one year that are
5available to offset a liability, the earlier credit shall be
6applied first.
7    In the case of mechanical insulation property installed by
8an entity described in paragraph (3) or (4) of Section 50(b) of
9the Internal Revenue Code, the person who is the primary
10contractor for the installation of the property shall be
11treated as the taxpayer that placed the property in service.
12    Energy savings shall be certified under rules promulgated
13by the Illinois Power Agency with the use of the National
14Institute of Building Sciences Mechanical Insulation Design
15Guide Energy Calculators or the 3E Plus Energy Efficiency
16Software developed by the North American Insulation
17Manufacturers Association.
18    For purposes of this Section:
19        "ASHRAE" means the American Society of Heating,
20    Refrigerating, and Air-Conditioning Engineers.
21        "Mechanical insulation property" includes insulation
22    materials, facings, and accessory products that are used
23    for thermal requirements for mechanical piping and
24    equipment, hot and cold applications, and heating,
25    venting, and air conditioning applications and are placed
26    in service in connection with a mechanical system that (i)

 

 

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1    is located in the State and (ii) is of a character subject
2    to an allowance for depreciation under the Internal Revenue
3    Code.
4        "Cost of mechanical insulation property" includes (i)
5    any amount paid or incurred for the installation of
6    mechanical insulation property for that incremental
7    portion above the minimums in ASHRAE standard 90.1-2007 and
8    the total insulation cost for maintenance applications,
9    (ii) in the case of removal and disposal of the old
10    mechanical insulation property, 10% of the cost of the new
11    mechanical insulation property (determined without regard
12    to this item), and (iii) expenditures for labor costs
13    properly allocable to the preparation, assembly, and
14    installation of mechanical insulation property.
15        "Applicable percentage" means the lesser of (i) 30% or
16    (ii) the reduction in energy loss (expressed as a
17    percentage) from the installed mechanical insulation
18    property compared with mechanical insulation property that
19    meets the minimum requirements of ASHRAE standard
20    90.1-2007.
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.".