IN THE SENATE OF THE UNITED STATES
May 22, 2013
Mr. King (for himself and Ms. Collins) introduced the following bill; which was read twice and referred to the Committee on Finance
To amend the Internal Revenue Code of 1986 to include biomass heating appliances for tax credits available for energy-efficient building property and energy property.
This Act may be cited as the
Biomass Thermal Utilization Act of
Act of 2013
Residential energy-efficient property credit for biomass fuel property expenditures
Allowance of credit
Subsection (a) of section 25D of the Internal Revenue Code of 1986 is amended—
and at the end of paragraph (4),
by striking the
period at the end of paragraph (5) and inserting
by adding at the end the following new paragraph:
30 percent of the qualified biomass fuel property expenditures made by the taxpayer during such year.
Qualified biomass fuel property expenditures
Subsection (d) of section 25D of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Qualified biomass fuel property expenditure
The term qualified biomass fuel property expenditure means an expenditure for property—
which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and
which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel).
For purposes of this section, the term biomass fuel means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues, plants (including aquatic plants), grasses, residues, and fibers. Such term includes densified biomass fuels such as wood pellets.
The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2013.
Investment tax credit for biomass heating property
Subparagraph (A) of
is amended by striking
or at the end of clause
(vi), by inserting
or at the end of clause (vii), and by
inserting after clause (vii) the following new clause:
open-loop biomass (within the meaning of section 45(c)(3)) heating property, including boilers or furnaces which operate at thermal output efficiencies of not less than 65 percent (measured by the higher heating value of the fuel) and which provide thermal energy in the form of heat, hot water, or steam for space heating, air conditioning, domestic hot water, or industrial process heat, but only with respect to periods ending before January 1, 2017,
30 percent and 15 percent credits
Subparagraph (A) of section 48(a)(2) is amended—
by redesignating clause (ii) as clause (iii),
by inserting after clause (i) the following new clause:
except as provided in clause (i)(V), 15 percent in the case of energy property described in paragraph (3)(A)(viii), and
or (ii) after
clause (i) in clause (iii), as so
Increased credit for greater efficiency
Clause (i) of section 48(a)(2)(A) is
amended by striking
and at the end of subclause (III) and by
inserting after subclause (IV) the following new subclause:
energy property described in paragraph (3)(A)(viii) which operates at a thermal output efficiency of not less than 80 percent (measured by the higher heating value of the fuel),
The amendments made by this section shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, 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).