I 
114TH CONGRESS 
1ST SESSION H. R. 2657 
To amend the Internal Revenue Code of 1986 to modify the energy credit 
to provide greater incentives for industrial energy efficiency. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 4, 2015 
Mr. REED (for himself, Mr. BLUMENAUER, Mr. GIBSON, Mr. KIND, Mr. HECK 
of Nevada, Mr. WELCH, Mr. COLLINS of New York, Mr. RYAN of Ohio, 
Mr. AMODEI, and Ms. TITUS) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
the energy credit to provide greater incentives for indus-
trial energy efficiency. 
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 ‘‘Power Efficiency and 
Resiliency Act’’ or as the ‘‘POWER Act’’. 
SEC. 2. MODIFICATIONS IN CREDIT FOR COMBINED HEAT 
AND POWER SYSTEM PROPERTY. 
(a) INCREASED
ENERGY
PERCENTAGE.—Section 
48(a)(2)(A)(i) of the Internal Revenue Code of 1986 is 
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amended by striking ‘‘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)(v), and’’. 
(b) MODIFICATION OF CERTAIN CAPACITY LIMITA-
TIONS.—Section 48(c)(3)(B) of such Code is amended— 
(1) by striking ‘‘15 megawatts’’ in clause (ii) 
and inserting ‘‘25 megawatts’’, 
(2) by striking ‘‘20,000 horsepower’’ in clause 
(ii) and inserting ‘‘34,000 horsepower’’, and 
(3) by striking clause (iii). 
(c) EXTENSION OF CREDIT FOR COMBINED HEAT 
AND
POWER
SYSTEM
PROPERTY.—Section 
48(c)(3)(A)(iv) of such Code is amended by striking ‘‘Jan-
uary 1, 2017’’ and inserting ‘‘January 1, 2019’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to periods after the date of the enact-
ment of this Act, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 
(as in effect on the day before the date of the enact-
ment of the Revenue Reconciliation Act of 1990). 
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(2) EXTENSION OF CREDIT.—The amendments 
made by subsection (c) shall apply to property 
placed in service after December 31, 2016. 
SEC. 3. ENERGY CREDIT FOR WASTE HEAT TO POWER 
PROPERTY. 
(a) IN GENERAL.—Section 48(a)(3)(A) of the Inter-
nal Revenue Code of 1986 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) waste heat to power property,’’. 
(b) WASTE HEAT TO POWER PROPERTY.—Section 
48(c) of such Code is amended by adding at the end the 
following new paragraph: 
‘‘(5) WASTE HEAT TO POWER PROPERTY.— 
‘‘(A) WASTE
HEAT
TO
POWER
PROP-
ERTY.—The term ‘waste heat to power prop-
erty’ means property comprising a system which 
generates electricity through the recovery of a 
qualified waste heat resource. 
‘‘(B) QUALIFIED WASTE HEAT RESOURCE 
DEFINED.—The term ‘qualified waste heat re-
source’ means— 
‘‘(i) exhaust heat or flared gas from 
any industrial process, 
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‘‘(ii) waste gas or industrial tail gas 
that would otherwise be flared, incinerated, 
or vented, 
‘‘(iii) a pressure drop in any gas for 
an industrial or commercial process, or 
‘‘(iv) such other forms of waste heat 
resources as the Secretary may determine. 
‘‘(C) EXCEPTION.—The term ‘qualified 
waste heat resource’ does not include any heat 
resource from a process whose primary purpose 
is the generation of electricity utilizing a fossil 
fuel or nuclear energy. 
‘‘(D) TERMINATION.—The term ‘waste 
heat to power property’ shall not include any 
property placed in service after December 31, 
2018.’’. 
(c) INCREASED
ENERGY
PERCENTAGE.—Section 
48(a)(2)(A)(i) of such Code, as amended by section 2, is 
amended by striking ‘‘and’’ at the end of subclause (IV) 
and by inserting after subclause (V) the following new 
subclause: 
‘‘(VI) energy property described 
in paragraph (3)(A)(viii), and’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
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enactment of this Act, under rules similar to the rules of 
section 48(m) of the Internal Revenue 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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