BTU Act of 2017

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. Short title This Act may be cited as the Biomass Thermal Utilization Act of 2017 BTU Act of 2017 2. Residential energy-efficient property credit for biomass fuel property expenditures (a) Allowance of credit Subsection (a) of section 25D (1) by striking and (2) by striking the period at the end of paragraph (5) and inserting , and (3) by adding at the end the following new paragraph: (6) 30 percent of the qualified biomass fuel property expenditures made by the taxpayer during such year. . (b) Qualified biomass fuel property expenditures Subsection (d) of section 25D (6) Qualified biomass fuel property expenditure (A) In general The term qualified biomass fuel property expenditure (i) which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and (ii) which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel). (B) Biomass fuel For purposes of this section, the term biomass fuel . (c) Application of termination date Subsection (h) of section 25D and qualified solar water heating property expenditures , qualified solar water heating property expenditures, and qualified biomass fuel property expenditures (d) Effective date The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2016. 3. Investment tax credit for biomass heating property (a) In general Subparagraph (A) of section 48(a)(3) (1) at the end of clause (vi) by striking or (2) at the end of clause (vii) by inserting or (3) by inserting after clause (vii) the following new clause: (viii) open-loop biomass (within the meaning of section 45(c)(3)) heating property, including boilers or furnaces that operate at thermal output efficiencies of not less than 65 percent (measured by the higher heating value of the fuel) and that provide thermal energy in the form of heat, hot water, or steam for space heating, air conditioning, domestic hot water, or industrial process heat, . (b) 30-Percent and 15-Percent credits (1) Energy percentage (A) In general Subparagraph (A) of section 48(a)(2) (ii) except as provided in clause (i)(V), 15 percent in the case of energy property described in paragraph (3)(A)(viii), but only with respect to property the construction of which begins before January 1, 2022, and . (B) Conforming amendment Clause (iii) of section 48(a)(2)(A) of such Code, as so redesignated, is amended by inserting or (ii) clause (i) (2) Increased credit for greater efficiency Clause (i) of section 48(a)(2)(A) of such Code is amended by striking and (V) energy property described in paragraph (3)(A)(viii) which operates at a thermal output efficiency of not less than 80 percent (measured by the higher heating value of the fuel), but only with respect to property the construction of which begins before January 1, 2022, . (c) Effective date The amendments made by this section shall apply to periods after December 31, 2016, in taxable years ending after such date, under rules similar to the rules of section 48(m)

Summary: Biomass Thermal Utilization Act of 2017 or the BTU Act of 2017 This bill amends the Internal Revenue Code to include 30% of qualified biomass fuel property expenditures for property placed in service before 2022 in the residential energy efficient property tax credit. A "qualified biomass fuel property expenditure" is an expenditure for property which uses the burning of biomass fuel (a plant-derived fuel available on a renewable or recurring basis) to heat a dwelling used as a residence, or to heat water for use in such dwelling, and which has a thermal efficiency rating of at least 75%. The bill also allows: (1) a 15% energy tax credit until 2022 for investment in open-loop biomass heating property, including boilers or furnaces that operate at thermal output efficiencies of at least 65% and provide thermal energy in the form of heat, hot water, or steam for space heating, air conditioning, domestic hot water, or industrial process heat; and (2) a 30% credit until 2022 for investment in such property that operates at a thermal output efficiency of at least 80%.