I 

111TH CONGRESS 

1ST SESSION H. R. 4144 

To amend the Internal Revenue Code of 1986 to modify the investment 

tax credit for combined heat and power system property. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 19, 2009 

Mr. INSLEE (for himself, Ms. BERKLEY, Ms. BALDWIN, Mr. BLUMENAUER, 

Mr. BARTLETT, Ms. MCCOLLUM, and Ms. SUTTON) 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 modify 

the investment tax credit for combined heat and power 

system 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. PURPOSE. 

4 The purposes of this Act are— 

5 (1) to promote energy efficiency through the 

6 use of combined heat and power systems by increas7 ing limits on the size of systems qualifying for tax 

8 credits under section 48(c) of the Internal Revenue 

9 Code of 1986, and 


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1 (2) to allow systems using waste energy from 

2 industrial processes to produce electricity or mechan3 ical energy to qualify for the tax credits. 

4 SEC. 2. MODIFICATIONS IN CREDIT FOR COMBINED HEAT 

5 AND POWER SYSTEM PROPERTY. 

6 (a) MODIFICATION OF CERTAIN CAPACITY LIMITA7 TIONS.—Subparagraph (B) of section 48(c)(3) of the In8 ternal Revenue Code of 1986 is amended— 

9 (1) in clause (ii)— 

10 (A) by striking ‘‘15 megawatts’’ and in11 serting ‘‘25 megawatts’’, and 

12 (B) by striking ‘‘20,000 horsepower’’ and 

13 inserting ‘‘34,000 horsepower’’, and 

14 (2) by striking clause (iii). 

15 (b) INCLUSION OF WASTE ENERGY RECOVERY AND

16 RELATED TECHNOLOGIES.— 

17 (1) IN GENERAL.—Subparagraph (A) of section 

18 48(c)(3) of such Code is amended to read as follows: 

19 ‘‘(A) COMBINED HEAT AND POWER SYS20 TEM PROPERTY.—The term ‘combined heat and 

21 power system property’ means property com22 prising a system which is placed in service be23 fore January 1, 2017, and— 

24 ‘‘(i) which uses the same energy 

25 source for the simultaneous or sequential 


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1 generation of electrical power, mechanical 

2 shaft power, or both, in combination with 

3 the generation of steam or other forms of 

4 useful thermal energy (including heating 

5 and cooling applications), and— 

6 ‘‘(I) produces at least 20 percent 

7 of its total useful energy in the form 

8 of thermal energy which is not used to 

9 produce electrical or mechanical power 

10 (or combination thereof), 

11 ‘‘(II) produces at least 20 per12 cent of its total useful energy in the 

13 form of electrical or mechanical power 

14 (or combination thereof), and 

15 ‘‘(III) has an energy efficiency 

16 percentage exceeding 60 percent, or 

17 ‘‘(ii) which produces electrical or me18 chanical power or usable thermal energy 

19 (in the form of steam, hot water, or other 

20 heated thermal working fluid) from recov21 ered waste energy, including systems 

22 using— 

23 ‘‘(I) back-pressure turbines in 

24 place of pressure-reducing valves, 


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1 ‘‘(II) rankine, sterling, kalina, or 

2 other heat engines, or 

3 ‘‘(III) waste energy to heat a 

4 thermal working fluid to displace the 

5 need for combustion of a fuel.’’. 

6 (2) CONFORMING AMENDMENT.—Section 

7 48(c)(3)(D)(i) of such Code is amended by striking 

8 ‘‘subparagraph (A)(iii)’’ and inserting ‘‘subpara9 graph (A)(i)(III)’’. 

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

11 this section shall apply to periods after the date of the 

12 enactment of this Act, under rules similar to the rules of 

13 section 48(m) of the Internal Revenue Code of 1986 (as 

14 in effect on the day before the date of the enactment of 

15 the Revenue Reconciliation Act of 1990). 

Æ 


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