I 
111TH CONGRESS 
2D SESSION 
H. R. 5977 
To amend the Internal Revenue Code of 1986 to provide tax incentives 
for producing electricity from wasted heat. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2010 
Mr. TONKO (for himself, Mr. INSLEE, Ms. BERKLEY, and Mr. PAUL) intro-
duced 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 ELECTRICTY 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’ includes— 
‘‘(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, and 
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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. 
‘‘(D) TERMINATION.—The term ‘wasted 
heat to electricity property’ shall not include 
any property placed in service after December 
31, 2016.’’. 
(c) 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 ‘‘, 
and’’, and by adding at the end the following new subpara-
graph: 
‘‘(J) wasted heat.’’. 
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