I 

113TH CONGRESS 

2D SESSION H. R. 4916 

To amend the Internal Revenue Code of 1986 to modify the energy credit 

to provide greater incentives for industrial energy efficiency. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 19, 2014 

Ms. SCHWARTZ (for herself, Mr. CROWLEY, Mr. GIBSON, Mr. KING of New 

York, and Mr. NEAL) 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 energy credit to provide greater incentives for industrial energy efficiency. 

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 ‘‘Power Efficiency and 

5 Resiliency Act’’ or as the ‘‘POWER Act’’. 

6 SEC. 2. MODIFICATIONS IN CREDIT FOR COMBINED HEAT 

7 AND POWER SYSTEM PROPERTY. 

8 (a) INCREASED ENERGY PERCENTAGE.—Clause (i) 

9 of section 48(a)(2)(A) of the Internal Revenue Code of 


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1 1986 is amended by striking ‘‘and’’ at the end of sub2 clause (III), by redesignating subclause (IV) as subclause 

3 (V), and by inserting after subclause (III) the following 

4 new subclause: 

5 ‘‘(IV) energy property described 

6 in paragraph (3)(A)(v), and’’. 

7 (b) MODIFICATION OF CERTAIN CAPACITY LIMITA8 TIONS.—Section 48(c)(3)(B) of such Code is amended— 

9 (1) by striking ‘‘15 megawatts’’ in clause (ii) 

10 and inserting ‘‘25 megawatts’’, 

11 (2) by striking ‘‘20,000 horsepower’’ in clause 

12 (ii) and inserting ‘‘34,000 horsepower’’, and 

13 (3) by striking clause (iii). 

14 (c) EXTENSION OF CREDIT FOR COMBINED HEAT

15 AND POWER SYSTEM PROPERTY.—Section 

16 48(c)(3)(A)(iv) of such Code is amended by striking ‘‘Jan17 uary 1, 2017’’ and inserting ‘‘January 1, 2019’’. 

18 (d) EFFECTIVE DATE.— 

19 (1) IN GENERAL.—Except as provided in para20 graph (2), the amendments made by this section 

21 shall apply to periods after the date of the enact22 ment of this Act, under rules similar to the rules of 

23 section 48(m) of the Internal Revenue Code of 1986 

24 (as in effect on the day before the date of the enact25 ment of the Revenue Reconciliation Act of 1990). 


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1 (2) EXTENSION OF CREDIT.—The amendments 

2 made by subsection (c) shall apply to property 

3 placed in service after December 31, 2016. 

4 SEC. 3. ENERGY CREDIT FOR WASTE HEAT TO POWER 

5 PROPERTY. 

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

7 48(a)(3) of the Internal Revenue Code of 1986 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) waste heat to power property,’’. 

12 (b) WASTE HEAT TO POWER PROPERTY.—Sub13 section (c) of section 48 of such Code is amended by add14 ing at the end the following new paragraph: 

15 ‘‘(5) WASTE HEAT TO POWER PROPERTY.— 

16 ‘‘(A) WASTE HEAT TO POWER PROP17 ERTY.—The term ‘waste heat to power prop18 erty’ means property comprising a system which 

19 generates electricity through the recovery of a 

20 qualified waste heat resource. 

21 ‘‘(B) QUALIFIED WASTE HEAT RESOURCE

22 DEFINED.—The term ‘qualified waste heat re23 source’ means— 

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

25 any industrial process, 


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

2 that would otherwise be flared, incinerated, 

3 or vented, 

4 ‘‘(iii) a pressure drop in any gas for 

5 an industrial or commercial process, or 

6 ‘‘(iv) such other forms of waste heat 

7 resources as the Secretary may determine. 

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

9 waste heat resource’ does not include any heat 

10 resource from a process whose primary purpose 

11 is the generation of electricity utilizing a fossil 

12 fuel. 

13 ‘‘(D) TERMINATION.—The term ‘waste 

14 heat to power property’ shall not include any 

15 property placed in service after December 31, 

16 2018.’’. 

17 (c) INCREASED ENERGY PERCENTAGE.—Clause (i) 

18 of section 48(a)(2)(A) of such Code is amended by insert19 ing after the new subclause (V) the following new sub20 clause: 

21 ‘‘(VI) energy property described 

22 in paragraph (3)(A)(viii), and’’. 

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

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

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


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

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

3 the Revenue Reconciliation Act of 1990). 

Æ 


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