Title: Waste Heat to Power Investment Tax Credit Act of 2019
Policy area: Taxation

Summary:
Waste Heat to Power Investment Tax Credit Act of 2019
This bill amends the Internal Revenue Code to include waste energy recovery property in the 30% energy tax credit, subject to a phaseout.
The bill defines "waste energy recovery property" as property that generates electricity solely from heat from buildings or equipment if the primary purpose of such buildings or equipment is not the generation of electricity. Such property may not have a capacity in excess of 50 megawatts.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5155 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 5155

  To amend the Internal Revenue Code of 1986 to include waste energy 
                recovery property in the energy credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 19, 2019

Mr. Schneider (for himself, Mr. Suozzi, Ms. Sanchez, Mr. Danny K. Davis 
  of Illinois, Mr. Beyer, Mr. Panetta, Mr. Blumenauer, and Ms. Moore) 
 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 waste energy 
                recovery property in the energy credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Waste Heat to Power Investment Tax 
Credit Act of 2019''.

SEC. 2. INCLUSION OF WASTE ENERGY RECOVERY PROPERTY IN ENERGY CREDIT.

    (a) In General.--Section 48(a)(3)(A) of the Internal Revenue Code 
of 1986 is amended by striking ``or'' at the end of clause (vi), by 
adding ``or'' at the end of clause (vii), and by adding at the end the 
following new clause:
                            ``(viii) waste energy recovery property,''.
    (b) Application of 30 Percent Credit.--Section 48(a)(2)(A)(i) of 
such Code is amended by striking ``and'' at the end of subclauses (III) 
and adding at the end the following new subclause:
                                    ``(V) waste energy recovery 
                                property, and''.
    (c) Phaseout.--Section 48(a) of such Code is amended by adding at 
the end the following new paragraph:
            ``(8) Phaseout for waste energy recovery property.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                the case of any waste energy recovery property, the 
                energy percentage determined under paragraph (2) shall 
                be equal to--
                            ``(i) in the case of any property the 
                        construction of which begins after December 31, 
                        2024, and before January 1, 2026, 26 percent, 
                        and
                            ``(ii) in the case of any property the 
                        construction of which begins after December 31, 
                        2025, and before January 1, 2027, 22 percent.
                    ``(B) Placed in service deadline.--In the case of 
                any energy property described in subparagraph (A) which 
                is not placed in service before January 1, 2029, the 
                energy percentage determined under paragraph (2) shall 
                be equal to 0 percent.''.
    (d) Definitions.--Section 48(c) of such Code is amended by adding 
at the end the following new paragraph:
            ``(5) Waste energy recovery property.--
                    ``(A) In general.--The term `waste energy recovery 
                property' means property that generates electricity 
                solely from heat from buildings or equipment if the 
                primary purpose of such building or equipment is not 
                the generation of electricity.
                    ``(B) Capacity limitation.--The term `waste energy 
                recovery property' shall not include any property which 
                has a capacity in excess of 50 megawatts.
                    ``(C) No double benefit.--Any waste energy recovery 
                property (determined without regard to this 
                subparagraph) which is part of a system which is a 
                combined heat and power system property shall not be 
                treated as waste energy recovery property for purposes 
                of this section unless the taxpayer elects to not treat 
                such system as a combined heat and power system 
                property for purposes of this section.
                    ``(D) Termination.--The term `waste energy recovery 
                property' shall not include any property the 
                construction of which does not begin before January 1, 
                2027.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2019, under rules similar to the 
rules of section 48(m) as in effect on the day before the date of the 
enactment of the Revenue Reconciliation Act of 1990.
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