I 
111TH CONGRESS 
1ST SESSION H. R. 4144 
To amend the Internal Revenue Code of 1986 to modify the investment 
tax credit for combined heat and power system property. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 19, 2009 
Mr. INSLEE (for himself, Ms. BERKLEY, Ms. BALDWIN, Mr. BLUMENAUER, 
Mr. BARTLETT, Ms. MCCOLLUM, and Ms. SUTTON) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
the investment tax credit for combined heat and power 
system property. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. PURPOSE. 
The purposes of this Act are— 
(1) to promote energy efficiency through the 
use of combined heat and power systems by increas-
ing limits on the size of systems qualifying for tax 
credits under section 48(c) of the Internal Revenue 
Code of 1986, and 
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(2) to allow systems using waste energy from 
industrial processes to produce electricity or mechan-
ical energy to qualify for the tax credits. 
SEC. 2. MODIFICATIONS IN CREDIT FOR COMBINED HEAT 
AND POWER SYSTEM PROPERTY. 
(a) MODIFICATION OF CERTAIN CAPACITY LIMITA-
TIONS.—Subparagraph (B) of section 48(c)(3) of the In-
ternal Revenue Code of 1986 is amended— 
(1) in clause (ii)— 
(A) by striking ‘‘15 megawatts’’ and in-
serting ‘‘25 megawatts’’, and 
(B) by striking ‘‘20,000 horsepower’’ and 
inserting ‘‘34,000 horsepower’’, and 
(2) by striking clause (iii). 
(b) INCLUSION OF WASTE ENERGY RECOVERY AND 
RELATED TECHNOLOGIES.— 
(1) IN GENERAL.—Subparagraph (A) of section 
48(c)(3) of such Code is amended to read as follows: 
‘‘(A) COMBINED HEAT AND POWER SYS-
TEM PROPERTY.—The term ‘combined heat and 
power system property’ means property com-
prising a system which is placed in service be-
fore January 1, 2017, and— 
‘‘(i) which uses the same energy 
source for the simultaneous or sequential 
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generation of electrical power, mechanical 
shaft power, or both, in combination with 
the generation of steam or other forms of 
useful thermal energy (including heating 
and cooling applications), and— 
‘‘(I) produces at least 20 percent 
of its total useful energy in the form 
of thermal energy which is not used to 
produce electrical or mechanical power 
(or combination thereof), 
‘‘(II) produces at least 20 per-
cent of its total useful energy in the 
form of electrical or mechanical power 
(or combination thereof), and 
‘‘(III) has an energy efficiency 
percentage exceeding 60 percent, or 
‘‘(ii) which produces electrical or me-
chanical power or usable thermal energy 
(in the form of steam, hot water, or other 
heated thermal working fluid) from recov-
ered waste energy, including systems 
using— 
‘‘(I) back-pressure turbines in 
place of pressure-reducing valves, 
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‘‘(II) rankine, sterling, kalina, or 
other heat engines, or 
‘‘(III) waste energy to heat a 
thermal working fluid to displace the 
need for combustion of a fuel.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
48(c)(3)(D)(i) of such Code is amended by striking 
‘‘subparagraph (A)(iii)’’ and inserting ‘‘subpara-
graph (A)(i)(III)’’. 
(c) 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) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
Æ 
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