S 628 — BTU Act of 2019

Summary

Biomass Thermal Utilization Act of 2019 or the BTU Act of 2019 This bill expands the tax credit for residential energy efficient property to include 30% of qualified biomass fuel property expenditures for property placed in service before 2024. A qualified biomass fuel property expenditure is an expenditure for property that uses the burning of biomass fuel (a plant-derived fuel available on a renewable or recurring basis) to heat a dwelling used as a residence, or to heat water for use in such dwelling, and which has a thermal efficiency rating of at least 75%. The bill also allows (1) a 15% energy tax credit until 2024 for investment in open-loop biomass heating property, including boilers or furnaces that operate at thermal output efficiencies of at least 65% and provide thermal energy in the form of heat, hot water, or steam for space heating, air conditioning, domestic hot water, or industrial process heat; and (2) a 30% credit until 2024 for investment in such property that operates at a thermal output efficiency of at least 80%.

Bill Text

• Introduced Introduced in Senate Current html February 28, 2019

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill amends the Internal Revenue Code to include biomass heating appliances for tax credits for energy-efficient property.

• Section 25D(a)

  (6) the qualified biomass fuel property expenditures,

  This adds biomass fuel property expenditures to the list of eligible expenditures for the residential energy-efficient property credit.

• Section 25D(d)

  Qualified biomass fuel property expenditure.-- (A) In general.--The term 'qualified biomass fuel property expenditure' means an expenditure for property-- (i) 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 (ii) which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel). (B) Biomass 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.

  This defines qualified biomass fuel property expenditures and biomass fuel for tax credit eligibility.

• Section 25D(g)

  For purposes of → (1) In general.--Except as provided under paragraph (2), for purposes of

  This modifies the introductory phrase to clarify applicability and structure within the section.

• Section 25D(g)

  (2) Applicable percentage for qualified biomass fuel property expenditures.--In the case of any qualified biomass fuel property expenditures made by the taxpayer during the taxable year, the applicable percentage shall be 30 percent.

  This establishes a 30 percent credit for qualified biomass fuel property expenditures.

• Section 25D(h)

  the credit allowed under this section shall not apply to property placed in service after December 31, 2021. → the credit allowed under this section shall not apply to property placed in service after December 31, 2023.

  This extends the expiration of the tax credit for qualified biomass fuel property expenditures by two years.

• Section 48(a)(3)(A)

  (viii) open-loop biomass (within the meaning of section 45(c)(3)) heating property, including boilers or furnaces that operate at thermal output efficiencies of not less than 65 percent (measured by the higher heating value of the fuel) 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.

  This adds open-loop biomass heating property to the list of eligible energy properties for the investment tax credit.

• Section 48(a)(2)(A)

  and

  This modification connects clauses in the energy percentage structure.

• Section 48(a)(2)(A)

  (ii) in the case of energy property described in paragraph (3)(A)(viii) the construction of which begins before January 1, 2024, 15 percent (30 percent in the case of any such property which operates at a thermal output efficiency of not less than 80 percent (measured by the higher heating value of the fuel)), and

  This introduces percentage credit specifics for new biomass heating properties based on efficiency ratings.

Action History

1. February 28, 2019

   Introduced in Senate

2. February 28, 2019

   Read twice and referred to the Committee on Finance.

Sponsors

• Susan M. Collins · Cosponsor
• Margaret Wood Hassan · Cosponsor
• Patrick J. Leahy · Cosponsor
• Jeanne Shaheen · Cosponsor
• Tammy Baldwin · Cosponsor
• Lisa Murkowski · Cosponsor
• King, Angus S., Jr. · Primary

Subjects