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S. 1191: BTU Act of 2021


The text of the bill below is as of Apr 15, 2021 (Introduced).


II

117th CONGRESS

1st Session

S. 1191

IN THE SENATE OF THE UNITED STATES

April 15, 2021

(for himself, Ms. Collins, Ms. Hassan, and Mrs. Shaheen) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to include biomass heating appliances in the energy credit and to extend the credit for residential energy efficient property.

1.

Short title

This Act may be cited as the Biomass Thermal Utilization Act of 2021 or the BTU Act of 2021.

2.

Investment tax credit for biomass heating property

(a)

In general

Section 48(a)(3)(A) of the Internal Revenue Code of 1986 is amended—

(1)

by striking or at the end of clause (vii),

(2)

by adding or at the end of clause (viii), and

(3)

and by inserting after clause (viii) the following new clause:

(ix)

open-loop biomass heating property (within the meaning of section 45(c)(3)) heating property, including boilers or furnaces that operate at thermal output efficiencies of not less than 75 percent (measured by the lower heating value of the fuel at nominal output), that are installed indoors, and that provide thermal energy in the form of heat, hot water, or steam for space heating, air conditioning, domestic hot water, or industrial process heat,

.

(b)

Open-Loop biomass heating property defined

Section 48(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(6)

Open-loop biomass heating property

(A)

In general

The term open-loop biomass heating property means any property which—

(i)

uses open-loop biomass (as defined in section 45(c)(3)) to produce thermal energy in the form of heat, hot water, hot air, or steam, and

(ii)

is used for space heating, air conditioning, domestic hot water, industrial process heat, or any combination of the foregoing.

(B)

Requirements for boilers and furnaces

Such term shall not include any boiler or furnace unless such boiler or furnace—

(i)

operates at thermal output efficiencies of not less than 75 percent (measured by the lower heating value of the fuel at nominal output), and

(ii)

is installed indoors.

.

(c)

Energy percentage

Section 48(a)(2)(A)(i) of such Code is amended—

(1)

by striking and at the end of subclause (IV), and

(2)

by adding at the end the following new subclause:

(VI)

open-loop biomass heating property, but only with respect to property the construction of which begins before January 1, 2029, and

.

(d)

Effective date

The amendments made by this section shall apply to periods after December 31, 2020, 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).

3.

Extension of residential energy efficient property credit

(a)

In general

Section 25D(h) of the Internal Revenue Code of 1986 is amended by striking December 31, 2023 and inserting December 31, 2028.

(b)

Application of phaseout

Section 25D(g) of such Code is amended—

(1)

by striking before January 1, 2023 in paragraph (2) and inserting before January 1, 2022,

(2)

by striking and at the end of paragraph (2),

(3)

by redesignating paragraph (3) as paragraph (5) and by inserting after paragraph (2) the following new paragraphs:

(3)

in the case of property placed in service after December 31, 2021, and before January 1, 2027, 30 percent,

(4)

in the case of property placed in service after December 31, 2026, and before January 1, 2028, 26 percent, and

, and

(4)

by striking December 31, 2022, and before January 1, 2024 in paragraph (5) (as so redesignated) and inserting December 31, 2027, and before January 1, 2029.

(c)

Effective date

The amendments made by this section shall apply to expenditures made after the date of the enactment of this Act.