I 
115TH CONGRESS 
1ST SESSION H. R. 3161 
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 HOUSE OF REPRESENTATIVES 
JUNE 29, 2017 
Mr. WELCH (for himself, Mr. KELLY of Pennsylvania, and Ms. KUSTER of 
New Hampshire) introduced the following bill; which was referred to the 
Committee on Ways and Means 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Biomass Thermal Uti-
lization Act of 2017’’ or the ‘‘BTU Act of 2017’’. 
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SEC. 
2. 
RESIDENTIAL 
ENERGY-EFFICIENT 
PROPERTY 
CREDIT FOR BIOMASS FUEL PROPERTY EX-
PENDITURES. 
(a) ALLOWANCE OF CREDIT.—Subsection (a) of sec-
tion 25D of the Internal Revenue Code of 1986 is amend-
ed— 
(1) by striking ‘‘and’’ at the end of paragraph 
(4); 
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘, and’’; 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 EXPENDI-
TURES.—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 EX-
PENDITURE.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
biomass fuel property expenditure’ means an 
expenditure for property— 
‘‘(i) which uses the burning of bio-
mass fuel to heat a dwelling unit located in 
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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’ means any 
plant-derived fuel available on a renewable or 
recurring basis, including agricultural crops and 
trees, wood and wood waste and residues, 
plants (including aquatic plants), grasses, resi-
dues, and fibers. Such term includes densified 
biomass fuels such as wood pellets.’’. 
(c) APPLICATION
OF TERMINATION DATE.—Sub-
section (h) of section 25D of the Internal Revenue Code 
of 1986 is amended by striking ‘‘and qualified solar water 
heating property expenditures’’ and inserting ‘‘, 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. 
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SEC. 3. INVESTMENT TAX CREDIT FOR BIOMASS HEATING 
PROPERTY. 
(a) IN GENERAL.—Subparagraph (A) of section 
48(a)(3) of the Internal Revenue Code of 1986 is amend-
ed— 
(1) at the end of clause (vi) by striking ‘‘or’’; 
(2) at the end of clause (vii) by inserting ‘‘or’’; 
and 
(3) by inserting after clause (vii) the following 
new clause: 
‘‘(viii) open-loop biomass (within the 
meaning of section 45(c)(3)) heating prop-
erty, including boilers or furnaces that op-
erate 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 indus-
trial process heat,’’. 
(b) 30-PERCENT AND 15-PERCENT CREDITS.— 
(1) ENERGY PERCENTAGE.— 
(A) IN
GENERAL.—Subparagraph (A) of 
section 48(a)(2) of the Internal Revenue Code 
of 1986 is amended by redesignating clause (ii) 
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as clause (iii) and 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), but only with respect to prop-
erty the construction of which begins be-
fore 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)’’ 
after ‘‘clause (i)’’. 
(2) INCREASED
CREDIT
FOR
GREATER
EFFI-
CIENCY.—Clause (i) of section 48(a)(2)(A) of such 
Code is amended by striking ‘‘and’’ at the end of 
subclause (III) and by inserting after subclause (IV) 
the following new subclause: 
‘‘(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 con-
struction of which begins before Janu-
ary 1, 2022,’’. 
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(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) of the Internal Rev-
enue 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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