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H.R. 2750 (112th): To amend the Internal Revenue Code of 1986 to modify the investment tax credit for combined heat and power system property.

The text of the bill below is as of Aug 1, 2011 (Introduced).


I

112th CONGRESS

1st Session

H. R. 2750

IN THE HOUSE OF REPRESENTATIVES

August 1, 2011

(for himself, Mr. Bartlett, Mr. Tonko, Ms. Berkley, Mr. Blumenauer, Ms. Baldwin, Mr. Israel, Mr. Pascrell, Mr. Quigley, and Ms. Sutton) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to modify the investment tax credit for combined heat and power system property.

1.

Purpose

The purposes of this Act are—

(1)

to promote energy efficiency through the use of combined heat and power systems by increasing limits on the size of systems qualifying for tax credits under section 48(c) of the Internal Revenue Code of 1986, and

(2)

to allow systems using waste energy from industrial processes to produce electricity or mechanical energy to qualify for the tax credits.

2.

Modifications in credit for combined heat and power system property

(a)

Modification of certain capacity limitations

Subparagraph (B) of section 48(c)(3) of the Internal Revenue Code of 1986 is amended—

(1)

in clause (ii)—

(A)

by striking 15 megawatts and inserting 25 megawatts, and

(B)

by striking 20,000 horsepower and inserting 34,000 horsepower, and

(2)

by striking clause (iii).

(b)

Inclusion of waste energy recovery and related technologies

(1)

In general

Subparagraph (A) of section 48(c)(3) of such Code is amended to read as follows:

(A)

Combined heat and power system property

The term combined heat and power system property means property comprising a system which is placed in service before January 1, 2017, and—

(i)

which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications), and—

(I)

produces at least 20 percent of its total useful energy in the form of thermal energy which is not used to produce electrical or mechanical power (or combination thereof),

(II)

produces at least 20 percent of its total useful energy in the form of electrical or mechanical power (or combination thereof), and

(III)

has an energy efficiency percentage exceeding 60 percent, or

(ii)

which produces electrical or mechanical power or usable thermal energy (in the form of steam, hot water, or other heated thermal working fluid) from recovered waste energy, including systems using—

(I)

back-pressure turbines in place of pressure-reducing valves,

(II)

rankine, sterling, kalina, or other heat engines, or

(III)

waste energy to heat a thermal working fluid to displace the need for combustion of a fuel.

.

(2)

Conforming amendment

Section 48(c)(3)(D)(i) of such Code is amended by striking subparagraph (A)(iii) and inserting subparagraph (A)(i)(III).

(c)

Effective date

The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).