I 
111TH CONGRESS 
2D SESSION 
H. R. 4751 
To amend the Internal Revenue Code of 1986 to encourage the deployment 
of highly efficient combined heat and power property, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 3, 2010 
Mr. TONKO (for himself, Mr. DAVIS of Illinois, and Ms. BERKLEY) 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 encourage 
the deployment of highly efficient combined heat and 
power property, and for other purposes. 
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 ‘‘Innovative Energy Sys-
tems Act of 2010’’. 
SEC. 2. INVESTMENT TAX CREDIT FOR HIGHLY EFFICIENT 
COMBINED HEAT AND POWER SYSTEM PROP-
ERTY. 
(a) IN GENERAL.—Clause (i) of section 48(a)(2)(A) 
of the Internal Revenue Code of 1986 is amended by strik-
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ing ‘‘and’’ at the end of subclause (III), by redesignating 
subclause (IV) as subclause (V), and by inserting after 
subclause (III) the following new subclause: 
‘‘(IV) energy property described 
in paragraph (3)(A)(viii), and’’. 
(b) TREATED
AS ENERGY PROPERTY.—Subpara-
graph (A) of section 48(a)(3) of such Code is amended 
by striking ‘‘or’’ at the end of clause (vi), by inserting 
‘‘or’’ at the end of clause (vii), and by adding at the end 
the following new clause: 
‘‘(viii) highly efficient combined heat 
and power system property,’’. 
(c) HIGHLY
EFFICIENT
COMBINED
HEAT
AND 
POWER SYSTEM PROPERTY.—Subsection (c) of section 48 
of such Code is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(5) HIGHLY EFFICIENT COMBINED HEAT AND 
POWER SYSTEM PROPERTY.— 
‘‘(A) HIGHLY EFFICIENT COMBINED HEAT 
AND
POWER
SYSTEM
PROPERTY.—The term 
‘highly efficient combined heat and power sys-
tem property’ means property at an industrial, 
commercial, or institutional facility comprising 
a system which— 
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‘‘(i)(I) uses the same energy source 
for the simultaneous or sequential genera-
tion of electrical power, mechanical shaft 
power, or both, in combination with the 
generation of steam or other forms of use-
ful thermal energy (including heating and 
cooling applications), 
‘‘(II) has a system design that pro-
vides an energy efficiency percentage of at 
least 70 percent, and 
‘‘(III) is placed in service before Jan-
uary 1, 2017, or 
‘‘(ii)(I) recovers waste energy from 
which electricity is generated through the 
modification of an existing facility or addi-
tion of a new facility, and 
‘‘(II) is placed in service before Janu-
ary 1, 2017. 
‘‘(B) LIMITATION.— 
‘‘(i) IN
GENERAL.—In the case of 
highly efficient combined heat and power 
system property with an electrical capacity 
in excess of the applicable capacity, the 
credit under subsection (a)(1) (determined 
without regard to this paragraph) with re-
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spect to such property for the taxable year 
in which such property was placed in serv-
ice shall not exceed the amount which 
bears the same ratio to such credit as the 
applicable capacity bears to the capacity of 
such property. 
‘‘(ii) 
APPLICABLE
CAPACITY.—For 
purposes of clause (i), the term ‘applicable 
capacity’ means 25 megawatts or a me-
chanical energy capacity of more than 
34,000 horsepower or an equivalent com-
bination of electrical and mechanical ca-
pacities. 
‘‘(C) INSTITUTIONAL FACILITY.—The term 
‘institutional facility’ means a hospital or a fa-
cility of an educational organization described 
in section 170(b)(1)(A)(ii). 
‘‘(D) COMMERCIAL
FACILITY.—The term 
‘commercial facility’ shall not include any facil-
ity of a utility.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
Æ 
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