I 
110TH CONGRESS 
1ST SESSION H. R. 3107 
To amend the Internal Revenue Code of 1986 to provide a credit for 
residential biomass fuel property expenditures. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 19, 2007 
Mr. HODES (for himself, Mr. KIND, Mr. WELCH of Vermont, Ms. SHEA-POR-
TER, Mr. BLUMENAUER, and Mr. MCGOVERN) 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 provide 
a credit for residential biomass fuel property expenditures. 
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 ‘‘Renewable Energy Tax 
Parity Act of 2007’’. 
SEC. 2. CREDIT FOR BIOMASS FUEL PROPERTY EXPENDI-
TURES. 
(a) ALLOWANCE OF CREDIT.—Subsection (a) of sec-
tion 25D of the Internal Revenue Code of 1986 (relating 
to allowance of credit), is amended— 
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(1) by striking ‘‘and’’ at the end of paragraph 
(2), 
(2) by striking the period at the end of para-
graph (3) and inserting ‘‘, and’’, and 
(3) by adding at the end the following new 
paragraph: 
‘‘(4) 30 percent of the qualified biomass fuel 
property expenditures made by the taxpayer during 
such year.’’. 
(b) MAXIMUM CREDIT.—Paragraph (1) of section 
25D(b) of such Code (relating to maximum credit) is 
amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (B), 
(2) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘, and’’, and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(D) $2,000 with respect to any qualified 
biomass fuel property expenditures.’’. 
(c) MAXIMUM EXPENDITURES.—Subparagraph (A) 
of section 25D(e)(4) of such Code (relating to maximum 
expenditures in case of joint occupancy) is amended— 
(1) by striking ‘‘and’’ at the end of clause (ii), 
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(2) by striking the period at the end of clause 
(iii) and inserting ‘‘, and’’, and 
(3) by adding at the end the following new 
clause: 
‘‘(iv) $6,667 in the case of any quali-
fied biomass fuel property expenditures.’’. 
(d) QUALIFIED BIOMASS FUEL PROPERTY EXPENDI-
TURES.—Subsection (d) of section 25D of such Code (re-
lating to definitions) is amended by adding at the end the 
following new paragraph: 
‘‘(4) 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 
‘‘(ii) which has a thermal efficiency 
rating of at least 75 percent. 
‘‘(B) BIOMASS
FUEL.—For purposes of 
this section, the term ‘biomass fuel’ means any 
plant-derived fuel available on a renewable or 
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recurring basis, including agricultural crops and 
trees, wood and wood waste and residues (in-
cluding wood pellets), plants (including aquatic 
plants), grasses, residues, and fibers.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures paid or incurred 
in taxable years beginning after December 31, 2007. 
Æ 
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