II 

110TH CONGRESS 

1ST SESSION S. 1697 

To amend the Internal Revenue Code of 1986 to provide a credit for 

residential biomass fuel property expenditures. 

IN THE SENATE OF THE UNITED STATES 

JUNE 26, 2007 

Mr. SUNUNU (for himself, Mr. GREGG, and Mr. THUNE) 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 provide 

a credit for residential biomass fuel property expenditures. 

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 ‘‘Renewable Energy Tax 

5 Parity Act of 2007’’. 

6 SEC. 2. CREDIT FOR BIOMASS FUEL PROPERTY EXPENDI7 TURES. 

8 (a) ALLOWANCE OF CREDIT.—Subsection (a) of sec9 tion 25D of the Internal Revenue Code of 1986 (relating 

10 to allowance of credit), is amended— 

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

2 (2), 

3 (2) by striking the period at the end of para4 graph (3) and inserting ‘‘, and’’, and 

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

6 paragraph: 

7 ‘‘(4) 30 percent of the qualified biomass fuel 

8 property expenditures made by the taxpayer during 

9 such year.’’. 

10 (b) MAXIMUM CREDIT.—Paragraph (1) of section 

11 25D(b) of such Code (relating to maximum credit) is 

12 amended— 

13 (1) by striking ‘‘and’’ at the end of subpara14 graph (B), 

15 (2) by striking the period at the end of sub16 paragraph (C) and inserting ‘‘, and’’, and 

17 (3) by adding at the end the following new sub18 paragraph: 

19 ‘‘(D) $2,000 with respect to any qualified 

20 biomass fuel property expenditures.’’. 

21 (c) MAXIMUM EXPENDITURES.—Subparagraph (A) 

22 of section 25D(e)(4) of such Code (relating to maximum 

23 expenditures in case of joint occupancy) is amended— 

24 (1) by striking ‘‘and’’ at the end of clause (ii), 

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1 (2) by striking the period at the end of clause 

2 (iii) and inserting ‘‘, and’’, and 

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

4 clause: 

5 ‘‘(iv) $6,667 in the case of any quali6 fied biomass fuel property expenditures.’’. 

7 (d) QUALIFIED BIOMASS FUEL PROPERTY EXPENDI8 TURES.—Subsection (d) of section 25D of such Code (re9 lating to definitions) is amended by adding at the end the 

10 following new paragraph: 

11 ‘‘(4) QUALIFIED BIOMASS FUEL PROPERTY EX12 PENDITURE.— 

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

14 biomass fuel property expenditure’ means an 

15 expenditure for property— 

16 ‘‘(i) which uses the burning of bio17 mass fuel to heat a dwelling unit located in 

18 the United States and used as a residence 

19 by the taxpayer, or to heat water for use 

20 in such a dwelling unit, and 

21 ‘‘(ii) which has a thermal efficiency 

22 rating of at least 75 percent. 

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

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

25 plant-derived fuel available on a renewable or 

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1 recurring basis, including agricultural crops and 

2 trees, wood and wood waste and residues (in3 cluding wood pellets), plants (including aquatic 

4 plants), grasses, residues, and fibers.’’. 

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

6 this section shall apply to expenditures paid or incurred 

7 in taxable years beginning after December 31, 2007. 

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