Sánchez, Fitzpatrick introduce bipartisan bill to create jobs, promote energy efficiency

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WASHINGTON – RealEstateRama – Congresswoman Linda T. Sánchez (D-CA) and Congressman Brian Fitzpatrick (R-PA) re-introduced a bipartisan bill to create jobs and promote energy efficiency. The Mechanical Insulation Installation Incentive Act of 2023 will significantly reduce U.S. energy consumption by supporting mechanical insulation installation across the country, improving energy efficiency, creating good-paying jobs, and taking important steps in our efforts to protect the environment.

“Mechanical insulation has long been overlooked as a solution to energy efficiency,” said Congresswoman Linda Sánchez. “It is a vital component in constructing and maintaining high-performance, energy-efficient buildings and protects our environment. This bill will encourage more manufacturing facilities, office buildings, schools, hospitals, power plants, hotels, and universities to invest in improving the energy efficiency of their buildings, and it will create good-paying union jobs in the process.”

“Simultaneously improving energy efficiency and creating new skilled trade jobs must be essential components of our emissions reduction strategy,” said Congressman Brian Fitzpatrick. “The bipartisan Mechanical Insulation Installation Incentive Act would encourage more American businesses to install proper insulation, thereby reducing their own energy costs by improving the performance of their buildings. I am proud to be leading this effort and grateful to Congresswoman Sánchez for her partnership on this issue.”

Mechanical insulation is a proven technology that would drastically cut energy consumption and greenhouse gas emissions in commercial buildings. Unfortunately, it is currently cost prohibitive for many employers. The Mechanical Insulation Installation Incentive Act of 2023 will provide a tax incentive for skilled-labor installation of mechanical insulation in buildings to make them more energy efficient.

Specifically, this legislation will:

  • Provide a tax credit for up to 10% of the labor costs incurred by a taxpayer in installing mechanical insulation property on pipes and equipment.
  • Save energy, lower energy costs, and reduce energy consumption while supporting good-paying union jobs.

Mechanical insulation encompasses all thermal, acoustical, and personal safety requirements for mechanical piping and equipment, as well as Heating, Ventilating and Air Condition (HVAC) applications. The system is used across a wide platform of commercial and industrial buildings to decrease heating and cooling costs while increasing efficiency.

This legislation is endorsed by the International Association of Heat & Frost Insulators and the Contractors of the Labor Management Cooperative Trust (LMCT).

The full text of the resolution can be found here.


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