I 
116TH CONGRESS 
1ST SESSION H. R. 1479 
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 
FEBRUARY 28, 2019 
Mr. WELCH (for himself, Mr. KELLY of Pennsylvania, Ms. KUSTER of New 
Hampshire, and Ms. PINGREE) 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 2019’’ or the ‘‘BTU Act of 2019’’. 
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SEC. 
2. 
RESIDENTIAL 
ENERGY-EFFICIENT 
PROPERTY 
CREDIT FOR BIOMASS FUEL PROPERTY EX-
PENDITURES. 
(a) ALLOWANCE OF CREDIT.—Section 25D(a) of the 
Internal Revenue Code of 1986 is amended— 
(1) in paragraph (4), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (5), by adding ‘‘and’’ at the 
end; and 
(3) by inserting after paragraph (5) the fol-
lowing: 
‘‘(6) the qualified biomass fuel property expend-
itures,’’. 
(b) QUALIFIED BIOMASS FUEL PROPERTY EXPENDI-
TURES.—Section 25D(d) of such Code is amended by add-
ing 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 
the United States and used as a residence 
by the taxpayer, or to heat water for use 
in such a dwelling unit, and 
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‘‘(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) APPLICABLE PERCENTAGE.—Subsection (g) of 
section 25D of such Code is amended— 
(1) by redesignating paragraphs (1), (2), and 
(3) as subparagraphs (A), (B), and (C), respectively, 
and by moving such subparagraphs (as so redesig-
nated) 2 ems to the right; 
(2) by striking ‘‘For purposes of’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—Except as provided under 
paragraph (2), for purposes of’’; and 
(3) by adding at the end the following: 
‘‘(2) APPLICABLE PERCENTAGE FOR QUALIFIED 
BIOMASS FUEL PROPERTY EXPENDITURES.—In the 
case of any qualified biomass fuel property expendi-
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tures made by the taxpayer during the taxable year, 
the applicable percentage shall be 30 percent.’’. 
(d) TERMINATION.—Subsection (h) of section 25D of 
such Code is amended to read as follows: 
‘‘(h) TERMINATION.— 
‘‘(1) IN GENERAL.—Except as provided under 
paragraph (2), the credit allowed under this section 
shall not apply to property placed in service after 
December 31, 2021. 
‘‘(2) APPLICATION
TO
QUALIFIED
BIOMASS 
FUEL PROPERTY.—In the case of property described 
in subsection (d)(6), the credit allowed under this 
section shall not apply to property placed in service 
after December 31, 2023.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures paid or incurred 
in taxable years beginning after December 31, 2018. 
SEC. 3. INVESTMENT TAX CREDIT FOR BIOMASS HEATING 
PROPERTY. 
(a) IN GENERAL.—Section 48(a)(3)(A) of the Inter-
nal Revenue Code of 1986 is amended— 
(1) by striking ‘‘or’’ at the end of clause (vi); 
(2) by adding ‘‘or’’ at the end of clause (vii); 
and 
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(3) and by inserting after clause (vii) the fol-
lowing 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.—Section 48(a)(2)(A) of 
such Code is amended— 
(i) by striking ‘‘and’’ at the end of 
clause (i)(IV); 
(ii) by redesignating clause (ii) as 
clause (iii); and 
(iii) by inserting after clause (i) the 
following new clause: 
‘‘(ii) in the case of energy property 
described in paragraph (3)(A)(viii) the 
construction of which begins before Janu-
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ary 1, 2024, 15 percent (30 percent in the 
case of any such property which operates 
at a thermal output efficiency of not less 
than 80 percent (measured by the higher 
heating value of the fuel)), and’’. 
(B) CONFORMING
AMENDMENT.—Section 
48(a)(2)(A)(iii) of such Code, as so redesig-
nated, is amended by inserting ‘‘or (ii)’’ after 
‘‘clause (i)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after December 31, 
2018, 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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