Title: BTU Act of 2019
Policy area: Taxation

Summary:
Biomass Thermal Utilization Act of 2019 or the BTU Act of 2019
This bill expands the tax credit for residential energy efficient property to include 30% of qualified biomass fuel property expenditures for property placed in service before 2024. A qualified biomass fuel property expenditure is an expenditure for property that uses the burning of biomass fuel (a plant-derived fuel available on a renewable or recurring basis) to heat a dwelling used as a residence, or to heat water for use in such dwelling, and which has a thermal efficiency rating of at least 75%.
The bill also allows (1) a 15% energy tax credit until 2024 for investment in open-loop biomass heating property, including boilers or furnaces that operate at thermal output efficiencies of at least 65% and provide thermal energy in the form of heat, hot water, or steam for space heating, air conditioning, domestic hot water, or industrial process heat; and (2) a 30% credit until 2024 for investment in such property that operates at a thermal output efficiency of at least 80%.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 628 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                 S. 628

 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 SENATE OF THE UNITED STATES

                           February 28, 2019

 Mr. King (for himself and Ms. Collins) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Biomass Thermal Utilization Act of 
2019'' or the ``BTU Act of 2019''.

SEC. 2. RESIDENTIAL ENERGY-EFFICIENT PROPERTY CREDIT FOR BIOMASS FUEL 
              PROPERTY EXPENDITURES.

    (a) Allowance of Credit.--Section 25D(a) of the Internal Revenue 
Code of 1986 is amended--
            (1) in paragraph (4), by striking ``and'' at the end,
            (2) in paragraph (5), by adding ``and'' at the end, and
            (3) by inserting after paragraph (5) the following:
            ``(6) the qualified biomass fuel property expenditures,''.
    (b) Qualified Biomass Fuel Property Expenditures.--Section 25D(d) 
of such Code is amended by adding at the end the following new 
paragraph:
            ``(6) Qualified biomass fuel property expenditure.--
                    ``(A) In general.--The term `qualified biomass fuel 
                property expenditure' means an expenditure for 
                property--
                            ``(i) which uses the burning of biomass 
                        fuel to heat a dwelling unit located in 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, 
                residues, and fibers. Such term includes densified 
                biomass fuels such as wood pellets.''.
    (c) Applicable Percentage.--Subsection (g) of section 25D of such 
Code is amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C), respectively, and by moving 
        such subparagraphs (as so redesignated) 2 ems to the right,
            (2) by striking ``For purposes of'' and inserting the 
        following:
            ``(1) In general.--Except as provided under paragraph (2), 
        for purposes of'', and
            (3) by adding at the end the following:
            ``(2) Applicable percentage for qualified biomass fuel 
        property expenditures.--In the case of any qualified biomass 
        fuel property expenditures made by the taxpayer during the 
        taxable year, the applicable percentage shall be 30 percent.''.
    (d) Termination.--Subsection (h) of section 25D of such Code is 
amended to read as follows:
    ``(h) Termination.--
            ``(1) In general.--Except as provided under paragraph (2), 
        the credit allowed under this section shall not apply to 
        property placed in service after December 31, 2021.
            ``(2) Application to qualified biomass fuel property.--In 
        the case of property described in subsection (d)(6), the credit 
        allowed under this section shall not apply to property placed 
        in service after December 31, 2023.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
December 31, 2018.

SEC. 3. INVESTMENT TAX CREDIT FOR BIOMASS HEATING PROPERTY.

    (a) In General.--Section 48(a)(3)(A) of the Internal Revenue Code 
of 1986 is amended--
            (1) by striking ``or'' at the end of clause (vi),
            (2) by adding ``or'' at the end of clause (vii), and
            (3) and by inserting after clause (vii) the following new 
        clause:
                            ``(viii) open-loop biomass (within the 
                        meaning of section 45(c)(3)) heating property, 
                        including boilers or furnaces that operate at 
                        thermal output efficiencies of not less than 65 
                        percent (measured by the higher heating value 
                        of the fuel) and that provide thermal energy in 
                        the form of heat, hot water, or steam for space 
                        heating, air conditioning, domestic hot water, 
                        or industrial process heat,''.
    (b) 30 Percent and 15 Percent Credits.--
            (1) Energy percentage.--
                    (A) In general.--Section 48(a)(2)(A) of such Code 
                is amended--
                            (i) by striking ``and'' at the end of 
                        clause (i)(IV),
                            (ii) by redesignating clause (ii) as clause 
                        (iii), and
                            (iii) by inserting after clause (i) the 
                        following new clause:
                            ``(ii) in the case of energy property 
                        described in paragraph (3)(A)(viii) the 
                        construction of which begins before January 1, 
                        2024, 15 percent (30 percent in the case of any 
                        such property which operates at a thermal 
                        output efficiency of not less than 80 percent 
                        (measured by the higher heating value of the 
                        fuel)), and''.
                    (B) Conforming amendment.--Section 48(a)(2)(A)(iii) 
                of such Code, as so redesignated, is amended by 
                inserting ``or (ii)'' after ``clause (i)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2018, 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 Reconciliation Act of 1990).
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