POWER Act

To amend the Internal Revenue Code of 1986 to modify the energy credit to provide greater incentives for industrial energy efficiency. 1. Short title This Act may be cited as the Power Efficiency and Resiliency Act POWER Act 2. Modifications in credit for combined heat and power system property (a) Increased energy percentage Clause (i) of section 48(a)(2)(A) and (IV) energy property described in paragraph (3)(A)(v), and . (b) Modification of certain capacity limitations Section 48(c)(3)(B) of such Code is amended— (1) by striking 15 megawatts 25 megawatts (2) by striking 20,000 horsepower 34,000 horsepower (3) by striking clause (iii). (c) Extension of credit for combined heat and power system property Section 48(c)(3)(A)(iv) of such Code is amended by striking January 1, 2017 January 1, 2019 (d) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) (2) Extension of credit The amendments made by subsection (c) shall apply to property placed in service after December 31, 2016. 3. Energy credit for waste heat to power property (a) In general Subparagraph (A) of section 48(a)(3) or or (viii) waste heat to power property, . (b) Waste heat To power property Subsection (c) of section 48 of such Code is amended by adding at the end the following new paragraph: (5) Waste heat to power property (A) Waste heat to power property The term waste heat to power property (B) Qualified waste heat resource defined The term qualified waste heat resource (i) exhaust heat or flared gas from any industrial process, (ii) waste gas or industrial tail gas that would otherwise be flared, incinerated, or vented, (iii) a pressure drop in any gas for an industrial or commercial process, or (iv) such other forms of waste heat resources as the Secretary may determine. (C) Exception The term qualified waste heat resource (D) Termination The term waste heat to power property . (c) Increased energy percentage Clause (i) of section 48(a)(2)(A) of such Code, as amended by section 2(a) of this Act, is further amended by inserting after the new subclause (V) the following new subclause: (VI) energy property described in paragraph (3)(A)(viii), and . (d) Effective date The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m)

Summary: Power Efficiency and Resiliency Act or the POWER Act Amends the Internal Revenue Code to: (1) allow a 30% energy tax credit for combined heat and power system property and increase the capacity limitations for such property, (2) extend until December 31, 2018, the placed-in-service deadline for such property, and (3) allow a 30% energy tax credit for waste heat to power property (property comprising a system generating electricity through the recovery of a qualified waste heat resource) placed in service before January 1, 2019. Includes within the definition of "qualified waste heat resource": (1) exhaust heat or flared gas from any industrial process; (2) waste gas or industrial tail gas that would otherwise be flared, incinerated, or vented; and (3) a pressure drop in any gas for an industrial or commercial process. Excludes from such definition any heat resource from a process the primary purpose of which is the generation of electricity utilizing a fossil fuel or nuclear energy.