and (B) utilized for thermal requirements for mechanical piping and equipment, hot and cold applications, and heating, venting and air conditioning applications which can be used in a variety of facilities. (2) Cost The cost of mechanical insulation property includes— (A) the amounts paid or incurred for the installation of such property for that incremental portion above the minimums in ASHRAE standard 90.1–2007 and the total insulation cost for maintenance applications, (B) in the case of removal and disposal of the old mechanical insulation property, 10 percent of the cost of the new mechanical insulation property (determined without regard to this subparagraph), and (C) expenditures for labor costs properly allocable to the preparation, assembly, and installation of mechanical insulation property. (d) Coordination Subsection (a) shall not apply to the cost of mechanical insulation property which is taken into account under section 179D or which, but for subsection (b) of section 179D, would be taken into account under such section. (e) Allocation of deduction for tax-Exempt property In the case of mechanical insulation property installed on or in property owned by an entity described in paragraph (3) or (4) of section 50(b), the person who is the primary contractor for the installation of such property shall be treated as the taxpayer that placed such property in service. (f) Certification For purposes of this section, energy savings shall be certified under regulations or other guidance provided by the Secretary, in consultation with the Secretary of Energy. (g) Termination This section shall not apply to any property placed in service after the end of the 5-year period beginning on the date of the enactment of this section. . (b) Deduction for capital expenditures Section 263(a)(1) of such Code (relating to capital expenditures) is amended by striking or at the end of subparagraph (K), by striking the period at the end of paragraph (L) and inserting , or , and by adding at the end the following new