II 

116TH CONGRESS 

1ST SESSION S. 628 

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. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 28, 2019 

Mr. KING (for himself and Ms. COLLINS) 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 for tax credits available for 

energy-efficient building property and energy property. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Biomass Thermal Uti5 lization Act of 2019’’ or the ‘‘BTU Act of 2019’’. 


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1 SEC. 2. RESIDENTIAL ENERGY-EFFICIENT PROPERTY 

2 CREDIT FOR BIOMASS FUEL PROPERTY EX3 PENDITURES. 

4 (a) ALLOWANCE OF CREDIT.—Section 25D(a) of the 

5 Internal Revenue Code of 1986 is amended— 

6 (1) in paragraph (4), by striking ‘‘and’’ at the 

7 end, 

8 (2) in paragraph (5), by adding ‘‘and’’ at the 

9 end, and 

10 (3) by inserting after paragraph (5) the fol11 lowing: 

12 ‘‘(6) the qualified biomass fuel property expend13 itures,’’. 

14 (b) QUALIFIED BIOMASS FUEL PROPERTY EXPENDI15 TURES.—Section 25D(d) of such Code is amended by add16 ing at the end the following new paragraph: 

17 ‘‘(6) QUALIFIED BIOMASS FUEL PROPERTY EX18 PENDITURE.— 

19 ‘‘(A) IN GENERAL.—The term ‘qualified 

20 biomass fuel property expenditure’ means an 

21 expenditure for property— 

22 ‘‘(i) which uses the burning of bio23 mass fuel to heat a dwelling unit located in 

24 the United States and used as a residence 

25 by the taxpayer, or to heat water for use 

26 in such a dwelling unit, and 


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1 ‘‘(ii) which has a thermal efficiency 

2 rating of at least 75 percent (measured by 

3 the higher heating value of the fuel). 

4 ‘‘(B) BIOMASS FUEL.—For purposes of 

5 this section, the term ‘biomass fuel’ means any 

6 plant-derived fuel available on a renewable or 

7 recurring basis, including agricultural crops and 

8 trees, wood and wood waste and residues, 

9 plants (including aquatic plants), grasses, resi10 dues, and fibers. Such term includes densified 

11 biomass fuels such as wood pellets.’’. 

12 (c) APPLICABLE PERCENTAGE.—Subsection (g) of 

13 section 25D of such Code is amended— 

14 (1) by redesignating paragraphs (1), (2), and 

15 (3) as subparagraphs (A), (B), and (C), respectively, 

16 and by moving such subparagraphs (as so redesig17 nated) 2 ems to the right, 

18 (2) by striking ‘‘For purposes of’’ and inserting 

19 the following: 

20 ‘‘(1) IN GENERAL.—Except as provided under 

21 paragraph (2), for purposes of’’, and 

22 (3) by adding at the end the following: 

23 ‘‘(2) APPLICABLE PERCENTAGE FOR QUALIFIED

24 BIOMASS FUEL PROPERTY EXPENDITURES.—In the 

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1 tures made by the taxpayer during the taxable year, 

2 the applicable percentage shall be 30 percent.’’. 

3 (d) TERMINATION.—Subsection (h) of section 25D of 

4 such Code is amended to read as follows: 

5 ‘‘(h) TERMINATION.— 

6 ‘‘(1) IN GENERAL.—Except as provided under 

7 paragraph (2), the credit allowed under this section 

8 shall not apply to property placed in service after 

9 December 31, 2021. 

10 ‘‘(2) APPLICATION TO QUALIFIED BIOMASS

11 FUEL PROPERTY.—In the case of property described 

12 in subsection (d)(6), the credit allowed under this 

13 section shall not apply to property placed in service 

14 after December 31, 2023.’’. 

15 (e) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to expenditures paid or incurred 

17 in taxable years beginning after December 31, 2018. 

18 SEC. 3. INVESTMENT TAX CREDIT FOR BIOMASS HEATING 

19 PROPERTY. 

20 (a) IN GENERAL.—Section 48(a)(3)(A) of the Inter21 nal Revenue Code of 1986 is amended— 

22 (1) by striking ‘‘or’’ at the end of clause (vi), 

23 (2) by adding ‘‘or’’ at the end of clause (vii), 

24 and 


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1 (3) and by inserting after clause (vii) the fol2 lowing new clause: 

3 ‘‘(viii) open-loop biomass (within the 

4 meaning of section 45(c)(3)) heating prop5 erty, including boilers or furnaces that op6 erate at thermal output efficiencies of not 

7 less than 65 percent (measured by the 

8 higher heating value of the fuel) and that 

9 provide thermal energy in the form of heat, 

10 hot water, or steam for space heating, air 

11 conditioning, domestic hot water, or indus12 trial process heat,’’. 

13 (b) 30 PERCENT AND 15 PERCENT CREDITS.— 

14 (1) ENERGY PERCENTAGE.— 

15 (A) IN GENERAL.—Section 48(a)(2)(A) of 

16 such Code is amended— 

17 (i) by striking ‘‘and’’ at the end of 

18 clause (i)(IV), 

19 (ii) by redesignating clause (ii) as 

20 clause (iii), and 

21 (iii) by inserting after clause (i) the 

22 following new clause: 

23 ‘‘(ii) in the case of energy property 

24 described in paragraph (3)(A)(viii) the 

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1 ary 1, 2024, 15 percent (30 percent in the 

2 case of any such property which operates 

3 at a thermal output efficiency of not less 

4 than 80 percent (measured by the higher 

5 heating value of the fuel)), and’’. 

6 (B) CONFORMING AMENDMENT.—Section 

7 48(a)(2)(A)(iii) of such Code, as so redesig8 nated, is amended by inserting ‘‘or (ii)’’ after 

9 ‘‘clause (i)’’. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to periods after December 31, 

12 2018, in taxable years ending after such date, under rules 

13 similar to the rules of section 48(m) of the Internal Rev14 enue Code of 1986 (as in effect on the day before the date 

15 of the enactment of the Revenue Reconciliation Act of 

16 1990). 

Æ 


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