I 
113TH CONGRESS 
1ST SESSION H. R. 2972 
To amend the Internal Revenue Code of 1986 to provide tax incentives 
for producing electricity from wasted heat. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 1, 2013 
Mr. TONKO 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 
tax incentives for producing electricity from wasted heat. 
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 ‘‘Heat is Power Act’’. 
SEC. 2. ENERGY CREDIT FOR WASTED HEAT TO ELEC-
TRICITY PROPERTY. 
(a) IN GENERAL.—Subparagraph (A) of section 
48(a)(3) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘or’’ at the end of clause (vi), by inserting 
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‘‘or’’ at the end of clause (vii), and by adding at the end 
the following new clause: 
‘‘(viii) wasted heat to electricity prop-
erty,’’. 
(b) WASTED HEAT TO ELECTRICITY PROPERTY.— 
Subsection (c) of section 48 of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(5) WASTED
HEAT
TO
ELECTRICITY
PROP-
ERTY.— 
‘‘(A) WASTED
HEAT
TO
ELECTRICITY 
PROPERTY.—The term ‘wasted heat to elec-
tricity property’ means property comprising a 
system which generates electricity through the 
recovery of a qualified wasted heat resource. 
‘‘(B) QUALIFIED WASTED HEAT RESOURCE 
DEFINED.—The term ‘qualified wasted heat re-
source’ means— 
‘‘(i) exhaust heat or flared gas from 
any industrial process, 
‘‘(ii) waste gas or industrial tail gas 
that would otherwise be flared, incinerated, 
or vented, 
‘‘(iii) a pressure drop in any gas, ex-
cluding any pressure drop to a condenser 
that subvents the resulting head, or 
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‘‘(iv) such other forms of wasted heat 
resources as the Secretary may determine. 
‘‘(C) EXCEPTION.—The term ‘qualified 
wasted heat resource’ does not include any heat 
resource from a process whose primary purpose 
is the generation of electricity utilizing a fossil 
fuel.’’. 
(c) TEMPORARILY
30-PERCENT
ENERGY
PROP-
ERTY.—Clause (i) of section 48(a)(2)(A) of such Code is 
amended by striking ‘‘and’’ at the end of subclause (III) 
and by adding at the end the following new subclause: 
‘‘(V) energy property described in 
(3)(A)(viii), but only with respect to 
periods ending before January 1, 
2018, and’’. 
(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. 
SEC. 3. PRODUCTION CREDIT FOR ELECTRICITY PRO-
DUCED FROM WASTED HEAT. 
(a) IN GENERAL.—Paragraph (1) of section 45(c) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘and’’ at the end of subparagraph (H), by striking the 
period at the end of subparagraph (I) and inserting ‘‘, 
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and’’, and by adding at the end the following new subpara-
graph: 
‘‘(J) wasted heat.’’. 
(b) WASTED HEAT.—Subsection (c) of section 45 of 
such Code is amended by adding at the end the following 
new paragraph: 
‘‘(11) WASTED HEAT.—The term ‘wasted heat’ 
means a qualified wasted heat resource (as defined 
by section 48(c)(5)).’’. 
(c) DEFINITION
OF FACILITY.—Subsection (d) of 
section 45 of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(12) WASTED HEAT FACILITY.—In the case of 
a facility using wasted heat to produce electricity, 
the term ‘qualified facility’ means any facility owned 
by the taxpayer which is originally placed in service 
before January 1, 2018.’’. 
(d) CREDIT RATE.—Subparagraph (A) of section 
45(b)(4) of such Code is amended by striking ‘‘or (11)’’ 
and inserting ‘‘(11), or (12)’’. 
(e) 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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