II 

114TH CONGRESS 

1ST SESSION S. 727 

To amend the Internal Revenue Code of 1986 to include biomass heating 

appliances for tax credits available for energy-efficient building property 

and energy property. 

IN THE SENATE OF THE UNITED STATES 

MARCH 12, 2015 

Mr. KING (for himself, Ms. COLLINS, Mrs. SHAHEEN, and Mr. MERKLEY) 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 include 

biomass heating appliances for tax credits available for 

energy-efficient building property and energy 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Biomass Thermal Uti5 lization Act of 2015’’ or the ‘‘BTU Act of 2015’’. 


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•S 727 IS

1 SEC. 2. RESIDENTIAL ENERGY-EFFICIENT PROPERTY 

2 CREDIT FOR BIOMASS FUEL PROPERTY EX3 PENDITURES. 

4 (a) ALLOWANCE OF CREDIT.—Subsection (a) of sec5 tion 25D of the Internal Revenue Code of 1986 is amend6 ed— 

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

8 (4), 

9 (2) by striking the period at the end of para10 graph (5) and inserting ‘‘, and’’, and 

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

12 paragraph: 

13 ‘‘(6) in the case of taxable years beginning be14 fore January 1, 2021, 30 percent of the qualified 

15 biomass fuel property expenditures made by the tax16 payer during such year.’’. 

17 (b) QUALIFIED BIOMASS FUEL PROPERTY EXPENDI18 TURES.—Subsection (d) of section 25D of the Internal 

19 Revenue Code of 1986 is amended by adding at the end 

20 the following new paragraph: 

21 ‘‘(6) QUALIFIED BIOMASS FUEL PROPERTY EX22 PENDITURE.— 

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

24 biomass fuel property expenditure’ means an 

25 expenditure for property— 


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•S 727 IS

1 ‘‘(i) which uses the burning of bio2 mass fuel to heat a dwelling unit located in 

3 the United States and used as a residence 

4 by the taxpayer, or to heat water for use 

5 in such a dwelling unit, and 

6 ‘‘(ii) which has a thermal efficiency 

7 rating of at least 75 percent (measured by 

8 the higher heating value of the fuel). 

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

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

11 plant-derived fuel available on a renewable or 

12 recurring basis, including agricultural crops and 

13 trees, wood and wood waste and residues, 

14 plants (including aquatic plants), grasses, resi15 dues, and fibers. Such term includes densified 

16 biomass fuels such as wood pellets.’’. 

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

18 this section shall apply to expenditures paid or incurred 

19 in taxable years beginning after December 31, 2015. 

20 SEC. 3. INVESTMENT TAX CREDIT FOR BIOMASS HEATING 

21 PROPERTY. 

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

23 48(a)(3) of the Internal Revenue Code of 1986 is amended 

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


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•S 727 IS

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

2 clause (vii) the following new clause: 

3 ‘‘(viii) open-loop biomass (within the 

4 meaning of section 45(c)(3)) heating prop5 erty, including boilers or furnaces which 

6 operate at thermal output efficiencies of 

7 not less than 65 percent (measured by the 

8 higher heating value of the fuel) and which 

9 provide thermal energy in the form of heat, 

10 hot water, or steam for space heating, air 

11 conditioning, domestic hot water, or indus12 trial process heat,’’. 

13 (b) 30-PERCENT AND 15-PERCENT CREDITS.— 

14 (1) ENERGY PERCENTAGE.— 

15 (A) IN GENERAL.—Subparagraph (A) of 

16 section 48(a)(2) of the Internal Revenue Code 

17 of 1986 is amended by redesignating clause (ii) 

18 as clause (iii) and by inserting after clause (i) 

19 the following new clause: 

20 ‘‘(ii) except as provided in clause 

21 (i)(V), 15 percent in the case of energy 

22 property described in paragraph 

23 (3)(A)(viii), but only with respect to peri24 ods ending before January 1, 2021, and’’. 


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1 (B) CONFORMING AMENDMENT.—Subpara2 graph of section 48(a)(2)(A)(iii) of such Code, 

3 as so redesignated, is amended by inserting ‘‘or 

4 (ii)’’ after ‘‘clause (i)’’. 

5 (2) INCREASED CREDIT FOR GREATER EFFI6 CIENCY.—Clause (i) of section 48(a)(2)(A) of such 

7 Code is amended by striking ‘‘and’’ at the end of 

8 subclause (III) and by inserting after subclause (IV) 

9 the following new subclause: 

10 ‘‘(V) energy property described in 

11 paragraph (3)(A)(viii) which operates 

12 at a thermal output efficiency of not 

13 less than 80 percent (measured by the 

14 higher heating value of the fuel), but 

15 only with respect to periods ending 

16 before January 1, 2021,’’. 

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

18 this section shall apply to periods after December 31, 

19 2015, in taxable years ending after such date, under rules 

20 similar to the rules of section 48(m) of the Internal Rev21 enue Code of 1986 (as in effect on the day before the date 

22 of the enactment of the Revenue Reconciliation Act of 

23 1990). 

Æ 


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