BTU Act of 2013

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 2013 BTU Act of 2013 2. Residential energy-efficient property credit for biomass fuel property expenditures (a) Allowance of credit Subsection (a) of section 25D of the Internal Revenue Code of 1986 is amended— (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 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (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) Effective date The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2013. 3. Investment tax credit for biomass heating property (a) In general Subparagraph (A) of section 48(a)(3) is amended by striking or or (viii) open-loop biomass (within the meaning of section 45(c)(3)) heating property, including boilers or furnaces which operate at thermal output efficiencies of not less than 65 percent (measured by the higher heating value of the fuel) and which provide thermal energy in the form of heat, hot water, or steam for space heating, air conditioning, domestic hot water, or industrial process heat, but only with respect to periods ending before January 1, 2017, . (b) 30 percent and 15 percent credits (1) In general Subparagraph (A) of section 48(a)(2) is amended— (A) by redesignating clause (ii) as clause (iii), (B) by inserting after clause (i) the following new clause: (ii) except as provided in clause (i)(V), 15 percent in the case of energy property described in paragraph (3)(A)(viii), and , and (C) by inserting or (ii) clause (i) (2) Increased credit for greater efficiency Clause (i) of section 48(a)(2)(A) 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), . (c) Effective date The amendments made by this section shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of section 48(m)

Summary: Biomass Thermal Utilization Act of 2013 or the BTU Act of 2013 - Amends the Internal Revenue Code, with respect to the tax credit for residential energy efficient property, to make qualified biomass fuel property expenditures eligible for such credit. Defines "qualified biomass fuel property expenditure" as 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%. Allows an energy tax credit until 2017 for investment in open-loop biomass heating property, including boilers or furnaces which operate at thermal output efficiencies of not less than 65% and provide thermal energy.