I 
113TH CONGRESS 
1ST SESSION H. R. 2715 
To amend the Internal Revenue Code of 1986 to include biomass heating 
appliances for tax credits available for energy-efficient building property 
and energy property. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 17, 2013 
Mr. MICHAUD (for himself and Mr. WELCH) 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 include 
biomass heating appliances for tax credits available for 
energy-efficient building property and energy property. 
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 ‘‘Biomass Thermal Uti-
lization Act of 2013’’ or the ‘‘BTU Act of 2013’’. 
VerDate Mar 15 2010 
21:53 Jul 18, 2013
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2715.IH
H2715
TKELLEY on DSK3SPTVN1PROD with BILLS
SEC. 
2. 
RESIDENTIAL 
ENERGY-EFFICIENT 
PROPERTY 
CREDIT FOR BIOMASS FUEL PROPERTY EX-
PENDITURES. 
(a) ALLOWANCE OF CREDIT.—Subsection (a) of sec-
tion 25D of the Internal Revenue Code of 1986 is amend-
ed— 
(1) by striking ‘‘and’’ at the end of paragraph 
(4), 
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘, and’’, and 
(3) by adding at the end the following new 
paragraph: 
‘‘(6) 30 percent of the qualified biomass fuel 
property expenditures made by the taxpayer during 
such year.’’. 
(b) QUALIFIED BIOMASS FUEL PROPERTY EXPENDI-
TURES.—Subsection (d) of section 25D of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(6) 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 
VerDate Mar 15 2010 
21:53 Jul 18, 2013
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2715.IH
H2715
TKELLEY on DSK3SPTVN1PROD with BILLS
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 (measured by 
the higher heating value of the fuel). 
‘‘(B) BIOMASS
FUEL.—For purposes of 
this section, the term ‘biomass fuel’ means any 
plant-derived fuel available on a renewable or 
recurring basis, including agricultural crops and 
trees, wood and wood waste and residues, 
plants (including aquatic plants), grasses, resi-
dues, and fibers. Such term includes densified 
biomass fuels such as wood pellets.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures paid or incurred 
in taxable years beginning after December 31, 2013. 
SEC. 3. INVESTMENT TAX CREDIT FOR BIOMASS HEATING 
PROPERTY. 
(a) IN GENERAL.—Subparagraph (A) of section 
48(a)(3) is amended by striking ‘‘or’’ at the end of clause 
(vi), by inserting ‘‘or’’ at the end of clause (vii), and by 
inserting after clause (vii) the following new clause: 
‘‘(viii) open-loop biomass (within the 
meaning of section 45(c)(3)) heating prop-
VerDate Mar 15 2010 
21:53 Jul 18, 2013
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2715.IH
H2715
TKELLEY on DSK3SPTVN1PROD with BILLS
erty, including boilers or furnaces which 
operate at thermal output efficiencies of 
not less than 65 percent (measured by the 
higher heating value of the fuel) and which 
provide thermal energy in the form of heat, 
hot water, or steam for space heating, air 
conditioning, domestic hot water, or indus-
trial process heat, but only with respect to 
periods ending before January 1, 2017,’’. 
(b) 30 PERCENT AND 15 PERCENT CREDITS.— 
(1) IN GENERAL.—Subparagraph (A) of section 
48(a)(2) is amended— 
(A) by redesignating clause (ii) as clause 
(iii), 
(B) by inserting after clause (i) the fol-
lowing new clause: 
‘‘(ii) except as provided in clause 
(i)(V), 15 percent in the case of energy 
property 
described 
in 
paragraph 
(3)(A)(viii), and’’, and 
(C) by inserting ‘‘or (ii)’’ after ‘‘clause (i)’’ 
in clause (iii), as so redesignated. 
(2) INCREASED
CREDIT
FOR
GREATER
EFFI-
CIENCY.—Clause (i) of section 48(a)(2)(A) is 
amended by striking ‘‘and’’ at the end of subclause 
VerDate Mar 15 2010 
21:53 Jul 18, 2013
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2715.IH
H2715
TKELLEY on DSK3SPTVN1PROD with BILLS
(III) and by inserting after subclause (IV) the fol-
lowing new subclause: 
‘‘(V) energy property described in 
paragraph (3)(A)(viii) which operates 
at a thermal output efficiency of not 
less than 80 percent (measured by the 
higher heating value of the fuel),’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act, in taxable years ending after such 
date, 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 Rec-
onciliation Act of 1990). 
Æ 
VerDate Mar 15 2010 
21:53 Jul 18, 2013
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H2715.IH
H2715
TKELLEY on DSK3SPTVN1PROD with BILLS