I 

111TH CONGRESS 

2D SESSION H. R. 4751 

To amend the Internal Revenue Code of 1986 to encourage the deployment 

of highly efficient combined heat and power property, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 3, 2010 

Mr. TONKO (for himself, Mr. DAVIS of Illinois, and Ms. BERKLEY) 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 encourage 

the deployment of highly efficient combined heat and 

power property, and for other purposes. 

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 ‘‘Innovative Energy Sys5 tems Act of 2010’’. 

6 SEC. 2. INVESTMENT TAX CREDIT FOR HIGHLY EFFICIENT 

7 COMBINED HEAT AND POWER SYSTEM PROP8 ERTY. 

9 (a) IN GENERAL.—Clause (i) of section 48(a)(2)(A) 

10 of the Internal Revenue Code of 1986 is amended by strikVerDate Nov 24 2008 21:17 Mar 04, 2010 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4751.IH H4751

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1 ing ‘‘and’’ at the end of subclause (III), by redesignating 

2 subclause (IV) as subclause (V), and by inserting after 

3 subclause (III) the following new subclause: 

4 ‘‘(IV) energy property described 

5 in paragraph (3)(A)(viii), and’’. 

6 (b) TREATED AS ENERGY PROPERTY.—Subpara7 graph (A) of section 48(a)(3) of such Code is amended 

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

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

10 the following new clause: 

11 ‘‘(viii) highly efficient combined heat 

12 and power system property,’’. 

13 (c) HIGHLY EFFICIENT COMBINED HEAT AND

14 POWER SYSTEM PROPERTY.—Subsection (c) of section 48 

15 of such Code is amended by adding at the end the fol16 lowing new paragraph: 

17 ‘‘(5) HIGHLY EFFICIENT COMBINED HEAT AND

18 POWER SYSTEM PROPERTY.— 

19 ‘‘(A) HIGHLY EFFICIENT COMBINED HEAT

20 AND POWER SYSTEM PROPERTY.—The term 

21 ‘highly efficient combined heat and power sys22 tem property’ means property at an industrial, 

23 commercial, or institutional facility comprising 

24 a system which— 


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1 ‘‘(i)(I) uses the same energy source 

2 for the simultaneous or sequential genera3 tion of electrical power, mechanical shaft 

4 power, or both, in combination with the 

5 generation of steam or other forms of use6 ful thermal energy (including heating and 

7 cooling applications), 

8 ‘‘(II) has a system design that pro9 vides an energy efficiency percentage of at 

10 least 70 percent, and 

11 ‘‘(III) is placed in service before Jan12 uary 1, 2017, or 

13 ‘‘(ii)(I) recovers waste energy from 

14 which electricity is generated through the 

15 modification of an existing facility or addi16 tion of a new facility, and 

17 ‘‘(II) is placed in service before Janu18 ary 1, 2017. 

19 ‘‘(B) LIMITATION.— 

20 ‘‘(i) IN GENERAL.—In the case of 

21 highly efficient combined heat and power 

22 system property with an electrical capacity 

23 in excess of the applicable capacity, the 

24 credit under subsection (a)(1) (determined 

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1 spect to such property for the taxable year 

2 in which such property was placed in serv3 ice shall not exceed the amount which 

4 bears the same ratio to such credit as the 

5 applicable capacity bears to the capacity of 

6 such property. 

7 ‘‘(ii) APPLICABLE CAPACITY.—For 

8 purposes of clause (i), the term ‘applicable 

9 capacity’ means 25 megawatts or a me10 chanical energy capacity of more than 

11 34,000 horsepower or an equivalent com12 bination of electrical and mechanical ca13 pacities. 

14 ‘‘(C) INSTITUTIONAL FACILITY.—The term 

15 ‘institutional facility’ means a hospital or a fa16 cility of an educational organization described 

17 in section 170(b)(1)(A)(ii). 

18 ‘‘(D) COMMERCIAL FACILITY.—The term 

19 ‘commercial facility’ shall not include any facil20 ity of a utility.’’. 

21 (d) 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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