I 

116TH CONGRESS 

1ST SESSION H. R. 5155 

To amend the Internal Revenue Code of 1986 to include waste energy 

recovery property in the energy credit. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 19, 2019 

Mr. SCHNEIDER (for himself, Mr. SUOZZI, Ms. SA ́NCHEZ, Mr. DANNY K. 

DAVIS of Illinois, Mr. BEYER, Mr. PANETTA, Mr. BLUMENAUER, and Ms. 

MOORE) 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 include 

waste energy recovery property in the energy credit. 

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 ‘‘Waste Heat to Power 

5 Investment Tax Credit Act of 2019’’. 

6 SEC. 2. INCLUSION OF WASTE ENERGY RECOVERY PROP7 ERTY IN ENERGY CREDIT. 

8 (a) IN GENERAL.—Section 48(a)(3)(A) of the Inter9 nal Revenue Code of 1986 is amended by striking ‘‘or’’ 


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

2 clause (vii), and by adding at the end the following new 

3 clause: 

4 ‘‘(viii) waste energy recovery prop5 erty,’’. 

6 (b) APPLICATION OF 30 PERCENT CREDIT.—Section 

7 48(a)(2)(A)(i) of such Code is amended by striking ‘‘and’’ 

8 at the end of subclauses (III) and adding at the end the 

9 following new subclause: 

10 ‘‘(V) waste energy recovery prop11 erty, and’’. 

12 (c) PHASEOUT.—Section 48(a) of such Code is 

13 amended by adding at the end the following new para14 graph: 

15 ‘‘(8) PHASEOUT FOR WASTE ENERGY RECOV16 ERY PROPERTY.— 

17 ‘‘(A) IN GENERAL.—Subject to subpara18 graph (B), in the case of any waste energy re19 covery property, the energy percentage deter20 mined under paragraph (2) shall be equal to— 

21 ‘‘(i) in the case of any property the 

22 construction of which begins after Decem23 ber 31, 2024, and before January 1, 2026, 

24 26 percent, and 


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1 ‘‘(ii) in the case of any property the 

2 construction of which begins after Decem3 ber 31, 2025, and before January 1, 2027, 

4 22 percent. 

5 ‘‘(B) PLACED IN SERVICE DEADLINE.—In 

6 the case of any energy property described in 

7 subparagraph (A) which is not placed in service 

8 before January 1, 2029, the energy percentage 

9 determined under paragraph (2) shall be equal 

10 to 0 percent.’’. 

11 (d) DEFINITIONS.—Section 48(c) of such Code is 

12 amended by adding at the end the following new para13 graph: 

14 ‘‘(5) WASTE ENERGY RECOVERY PROPERTY.— 

15 ‘‘(A) IN GENERAL.—The term ‘waste en16 ergy recovery property’ means property that 

17 generates electricity solely from heat from 

18 buildings or equipment if the primary purpose 

19 of such building or equipment is not the genera20 tion of electricity. 

21 ‘‘(B) CAPACITY LIMITATION.—The term 

22 ‘waste energy recovery property’ shall not in23 clude any property which has a capacity in ex24 cess of 50 megawatts. 


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1 ‘‘(C) NO DOUBLE BENEFIT.—Any waste 

2 energy recovery property (determined without 

3 regard to this subparagraph) which is part of a 

4 system which is a combined heat and power sys5 tem property shall not be treated as waste en6 ergy recovery property for purposes of this sec7 tion unless the taxpayer elects to not treat such 

8 system as a combined heat and power system 

9 property for purposes of this section. 

10 ‘‘(D) TERMINATION.—The term ‘waste en11 ergy recovery property’ shall not include any 

12 property the construction of which does not 

13 begin before January 1, 2027.’’. 

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

15 this section shall apply to periods after December 31, 

16 2019, under rules similar to the rules of section 48(m) 

17 as in effect on the day before the date of the enactment 

18 of the Revenue Reconciliation Act of 1990. 

Æ 


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