II 

115TH CONGRESS 

1ST SESSION S. 1480 

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 

JUNE 29, 2017 

Mr. KING (for himself, Ms. COLLINS, Mrs. SHAHEEN, Mr. MERKLEY, and Ms. 

HASSAN) 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 2017’’ or the ‘‘BTU Act of 2017’’. 


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•S 1480 IS

1 SEC. 2. RESIDENTIAL ENERGY-EFFICIENT PROPERTY 

2 CREDIT FOR BIOMASS FUEL PROPERTY EX3 PENDITURES. 

4 (a) ALLOWANCE OF CREDIT.—Subsection (a) of sec5 tion 25D of the Internal Revenue Code of 1986 is amend6 ed— 

7 (1) by striking ‘‘and’’ at the end of paragraph 

8 (4); 

9 (2) by striking the period at the end of para10 graph (5) and inserting ‘‘, and’’; and 

11 (3) by adding at the end the following new 

12 paragraph: 

13 ‘‘(6) 30 percent of the qualified biomass fuel 

14 property expenditures made by the taxpayer during 

15 such year.’’. 

16 (b) QUALIFIED BIOMASS FUEL PROPERTY EXPENDI17 TURES.—Subsection (d) of section 25D of the Internal 

18 Revenue Code of 1986 is amended by adding at the end 

19 the following new paragraph: 

20 ‘‘(6) QUALIFIED BIOMASS FUEL PROPERTY EX21 PENDITURE.— 

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

23 biomass fuel property expenditure’ means an 

24 expenditure for property— 

25 ‘‘(i) which uses the burning of bio26 mass fuel to heat a dwelling unit located in 


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1 the United States and used as a residence 

2 by the taxpayer, or to heat water for use 

3 in such a dwelling unit, and 

4 ‘‘(ii) which has a thermal efficiency 

5 rating of at least 75 percent (measured by 

6 the higher heating value of the fuel). 

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

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

9 plant-derived fuel available on a renewable or 

10 recurring basis, including agricultural crops and 

11 trees, wood and wood waste and residues, 

12 plants (including aquatic plants), grasses, resi13 dues, and fibers. Such term includes densified 

14 biomass fuels such as wood pellets.’’. 

15 (c) APPLICATION OF TERMINATION DATE.—Sub16 section (h) of section 25D of the Internal Revenue Code 

17 of 1986 is amended by striking ‘‘and qualified solar water 

18 heating property expenditures’’ and inserting ‘‘, qualified 

19 solar water heating property expenditures, and qualified 

20 biomass fuel property expenditures’’. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to expenditures paid or incurred 

23 in taxable years beginning after December 31, 2016. 


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1 SEC. 3. INVESTMENT TAX CREDIT FOR BIOMASS HEATING 

2 PROPERTY. 

3 (a) IN GENERAL.—Subparagraph (A) of section 

4 48(a)(3) of the Internal Revenue Code of 1986 is amend5 ed— 

6 (1) at the end of clause (vi) by striking ‘‘or’’; 

7 (2) at the end of clause (vii) by inserting ‘‘or’’; 

8 and 

9 (3) by inserting after clause (vii) the following 

10 new clause: 

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

12 meaning of section 45(c)(3)) heating prop13 erty, including boilers or furnaces that op14 erate at thermal output efficiencies of not 

15 less than 65 percent (measured by the 

16 higher heating value of the fuel) and that 

17 provide thermal energy in the form of heat, 

18 hot water, or steam for space heating, air 

19 conditioning, domestic hot water, or indus20 trial process heat,’’. 

21 (b) 30-PERCENT AND 15-PERCENT CREDITS.— 

22 (1) ENERGY PERCENTAGE.— 

23 (A) IN GENERAL.—Subparagraph (A) of 

24 section 48(a)(2) of the Internal Revenue Code 

25 of 1986 is amended by redesignating clause (ii) 


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1 as clause (iii) and by inserting after clause (i) 

2 the following new clause: 

3 ‘‘(ii) except as provided in clause 

4 (i)(V), 15 percent in the case of energy 

5 property described in paragraph 

6 (3)(A)(viii), but only with respect to prop7 erty the construction of which begins be8 fore January 1, 2022, and’’. 

9 (B) CONFORMING AMENDMENT.—Subpara10 graph of section 48(a)(2)(A)(iii) of such Code, 

11 as so redesignated, is amended by inserting ‘‘or 

12 (ii)’’ after ‘‘clause (i)’’. 

13 (2) INCREASED CREDIT FOR GREATER EFFI14 CIENCY.—Clause (i) of section 48(a)(2)(A) of such 

15 Code is amended by striking ‘‘and’’ at the end of 

16 subclause (III) and by inserting after subclause (IV) 

17 the following new subclause: 

18 ‘‘(V) energy property described in 

19 paragraph (3)(A)(viii) which operates 

20 at a thermal output efficiency of not 

21 less than 80 percent (measured by the 

22 higher heating value of the fuel), but 

23 only with respect to property the con24 struction of which begins before Janu25 ary 1, 2022,’’. 


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

2 this section shall apply to periods after December 31, 

3 2016, in taxable years ending after such date, under rules 

4 similar to the rules of section 48(m) of the Internal Rev5 enue Code of 1986 (as in effect on the day before the date 

6 of the enactment of the Revenue Reconciliation Act of 

7 1990). 

Æ 


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