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Linda Sánchez and Robert Dold Introduce Bipartisan Bill To Create Jobs, Promote Energy Efficiency

December 4, 2015
Press Release

Washington, DC- U.S. Congresswoman Linda Sánchez (CA-38) and U.S. Congressman Robert Dold (IL-10) today introduced a bipartisan bill to create jobs and promote energy efficiency.  The Mechanical Insulation Installation Incentive Act of 2015 would significantly reduce U.S. energy consumption by improving energy efficiency.  Estimates show that this legislation would create 25,000 jobs annually, save $35 billion in energy costs and reduce carbon dioxide emissions by 170 million metric tons.  

“Increasing mechanical insulation at manufacturing and other facilities can generate billions in energy savings, reduce millions of metric tons of carbon dioxide and other greenhouse gas emissions, and create thousands of jobs annually,” Rep. Dold said. “This bill is a bipartisan win-win.  Increased use and maintenance of mechanical insulation can pay for itself in a short time, help grow the economy and better preserve our environment.”

“Energy efficiency in homes has been a leading issue for consumers for many years, but unfortunately mechanical insulation has been largely overlooked,” said Rep. Sánchez. “It is a vital component in constructing and maintaining high-performance, energy-efficient buildings and protect our environment. This bill would encourage more manufacturing facilities, office buildings, schools, hospitals, power plants, hotels, and universities to invest in improving the energy efficiency of their buildings and machinery. I’m proud to join with Rep. Robert Dold to introduce this important bipartisan legislation.”

Mechanical insulation is a proven technology that would drastically cut energy consumption and greenhouse gas emissions in commercial buildings, but it is cost prohibitive for many employers.  This bill would give employers a tax incentive for installation costs of mechanical insulation in commercial or industrial buildings.  The company would receive a 30 percent tax credit in the fiscal year in which the mechanical insulation was put in service or maintenance completed.  The tax credit would be available for five years, giving ample time to implement the necessary installation.  

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.