I 

113TH CONGRESS 

1ST SESSION H. R. 2972 

To amend the Internal Revenue Code of 1986 to provide tax incentives 

for producing electricity from wasted heat. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 1, 2013 

Mr. TONKO 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 provide 

tax incentives for producing electricity from wasted heat. 

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 ‘‘Heat is Power Act’’. 

5 SEC. 2. ENERGY CREDIT FOR WASTED HEAT TO ELEC6 TRICITY PROPERTY. 

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

8 48(a)(3) of the Internal Revenue Code of 1986 is amended 

9 by striking ‘‘or’’ at the end of clause (vi), by inserting 


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

2 the following new clause: 

3 ‘‘(viii) wasted heat to electricity prop4 erty,’’. 

5 (b) WASTED HEAT TO ELECTRICITY PROPERTY.— 

6 Subsection (c) of section 48 of such Code is amended by 

7 adding at the end the following new paragraph: 

8 ‘‘(5) WASTED HEAT TO ELECTRICITY PROP9 ERTY.— 

10 ‘‘(A) WASTED HEAT TO ELECTRICITY

11 PROPERTY.—The term ‘wasted heat to elec12 tricity property’ means property comprising a 

13 system which generates electricity through the 

14 recovery of a qualified wasted heat resource. 

15 ‘‘(B) QUALIFIED WASTED HEAT RESOURCE

16 DEFINED.—The term ‘qualified wasted heat re17 source’ means— 

18 ‘‘(i) exhaust heat or flared gas from 

19 any industrial process, 

20 ‘‘(ii) waste gas or industrial tail gas 

21 that would otherwise be flared, incinerated, 

22 or vented, 

23 ‘‘(iii) a pressure drop in any gas, ex24 cluding any pressure drop to a condenser 

25 that subvents the resulting head, or 


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1 ‘‘(iv) such other forms of wasted heat 

2 resources as the Secretary may determine. 

3 ‘‘(C) EXCEPTION.—The term ‘qualified 

4 wasted heat resource’ does not include any heat 

5 resource from a process whose primary purpose 

6 is the generation of electricity utilizing a fossil 

7 fuel.’’. 

8 (c) TEMPORARILY 30-PERCENT ENERGY PROP9 ERTY.—Clause (i) of section 48(a)(2)(A) of such Code is 

10 amended by striking ‘‘and’’ at the end of subclause (III) 

11 and by adding at the end the following new subclause: 

12 ‘‘(V) energy property described in 

13 (3)(A)(viii), but only with respect to 

14 periods ending before January 1, 

15 2018, and’’. 

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

17 this section shall apply to property placed in service after 

18 the date of the enactment of this Act. 

19 SEC. 3. PRODUCTION CREDIT FOR ELECTRICITY PRO20 DUCED FROM WASTED HEAT. 

21 (a) IN GENERAL.—Paragraph (1) of section 45(c) of 

22 the Internal Revenue Code of 1986 is amended by striking 

23 ‘‘and’’ at the end of subparagraph (H), by striking the 

24 period at the end of subparagraph (I) and inserting ‘‘, 


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1 and’’, and by adding at the end the following new subpara2 graph: 

3 ‘‘(J) wasted heat.’’. 

4 (b) WASTED HEAT.—Subsection (c) of section 45 of 

5 such Code is amended by adding at the end the following 

6 new paragraph: 

7 ‘‘(11) WASTED HEAT.—The term ‘wasted heat’ 

8 means a qualified wasted heat resource (as defined 

9 by section 48(c)(5)).’’. 

10 (c) DEFINITION OF FACILITY.—Subsection (d) of 

11 section 45 of such Code is amended by adding at the end 

12 the following new paragraph: 

13 ‘‘(12) WASTED HEAT FACILITY.—In the case of 

14 a facility using wasted heat to produce electricity, 

15 the term ‘qualified facility’ means any facility owned 

16 by the taxpayer which is originally placed in service 

17 before January 1, 2018.’’. 

18 (d) CREDIT RATE.—Subparagraph (A) of section 

19 45(b)(4) of such Code is amended by striking ‘‘or (11)’’ 

20 and inserting ‘‘(11), or (12)’’. 

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

22 this section shall apply to property placed in service after 

23 the date of the enactment of this Act. 

Æ 


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