# 119-hr-2463: Mechanical Insulation Installation Incentive Act of 2025

119-hr-2463, Mechanical Insulation Installation Incentive Act of 2025, is a 119th Congress bill sponsored by Rep. Sánchez, Linda T. [D-CA-38] (D-CA); status introduced; PRIA reads it as touching household money (as of 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-hr-2463
- As of: 2025-12-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-2463
- Congress: 119
- Title: Mechanical Insulation Installation Incentive Act of 2025
- Status: introduced
- Introduced: 2025-03-27
- Sponsor: Rep. Sánchez, Linda T. [D-CA-38] (D-CA)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

**10% labor tax credit for mechanical insulation**. This bill would create a time-limited, nonrefundable tax credit equal to 10% of labor costs for installing qualifying mechanical insulation on U.S. depreciable mechanical systems that meet Reference Standard 90.1 and reduce energy loss. The credit would apply to amounts paid or incurred after December 31, 2025 and would terminate for costs paid after December 31, 2028. It would be treated as part of the general business credit and would bar a tax deduction for the portion of labor costs equal to the credit. If the credit exceeds the deduction amount, the excess would be charged to the taxpayer’s capital account. - Building owners and managers: Could claim a 10% credit on labor when adding insulation to eligible mechanical systems that were placed in service at least one year earlier. This targets retrofits that cut energy loss. - Insulation contractors and workers: The credit specifically covers labor costs, including work on property assembled offsite, which may boost demand for installation services. - Business tax returns: The credit is nonrefundable and folded into the general business credit rules, and it changes how related labor costs are deducted or capitalized.

## Cosponsors (1)

- Rep. Fitzpatrick, Brian K. [R-PA-1] (R-PA), 2025-03-27T00:00:00.000Z

## Provisions PRIA read

- 10% credit for business insulation labor: benefit, high. If enacted, businesses could claim a nonrefundable tax credit equal to 10% of labor costs to install qualifying mechanical insulation (including insulation assembled offsite). The system would need to be in the U.S., used in business and depreciable, and first placed in service at least one year ea…

## Related bills

- 119-hr-10421: Transforming Education for the Future Act
- 119-hr-6900: American Affordability Act of 2025
- 119-hr-7977: Energy Bills Relief Act
- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-2725: Affordable Housing Credit Improvement Act of 2025
- 119-hr-7973: Momnibus Act

## Sources
- [119-hr-2463 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/2463)

## Related
- [119-hr-10421: Transforming Education for the Future Act](https://policyrisk.com/legislation/119-hr-10421)
- [119-hr-6900: American Affordability Act of 2025](https://policyrisk.com/legislation/119-hr-6900)
- [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977)
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-2725: Affordable Housing Credit Improvement Act of 2025](https://policyrisk.com/legislation/119-hr-2725)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-2463 (as of 2025-12-21).