Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Biomass Thermal Utilization Act of
2017'' or the ''BTU Act of 2017''.

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

(a) Allowance of Credit.--Subsection (a) of section 25D of the
Internal Revenue Code of 1986 is amended--
(1) by striking ''and'' at the end of paragraph (4);
(2) by striking the period at the end of paragraph (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 Expenditures.--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 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) Application of Termination Date.--Subsection (h) of section 25D
of the Internal Revenue Code of 1986 is amended by striking ''and
qualified solar water heating property expenditures'' and inserting '',
qualified solar water heating property expenditures, and qualified
biomass fuel property expenditures''.
(d) Effective Date.--The amendments made by this section shall
apply to expenditures paid or incurred in taxable years beginning after
December 31, 2016.

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

(a) In General.--Subparagraph (A) of section 48(a)(3) of the
Internal Revenue Code of 1986 is amended--
(1) at the end of clause (vi) by striking ''or'';
(2) at the end of clause (vii) by inserting ''or''; and
(3) 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.--Subparagraph (A) of section
48(a)(2) of the Internal Revenue Code of 1986 is
amended by redesignating clause (ii) as clause (iii)
and by inserting after clause (i) the following new
clause:
''(ii) except as provided in clause (i)(V),
15 percent in the case of energy property
described in paragraph (3)(A)(viii), but only
with respect to property the construction of
which begins before January 1, 2022, and''.
(B) Conforming amendment.--Clause (iii) of section
48(a)(2)(A) of such Code, as so redesignated, is
amended by inserting ''or (ii)'' after ''clause (i)''.
(2) Increased credit for greater efficiency.--Clause (i) of
section 48(a)(2)(A) of such Code is amended by striking ''and''
at the end of subclause (III) and by inserting after subclause
(IV) the following 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), but
only with respect to property the
construction of which begins before
January 1, 2022,''.
(c) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2016, 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).
Student:
Biomass Thermal Utilization Act of 2017 or the BTU Act of 2017 This bill amends the Internal Revenue Code to include 30% of qualified biomass fuel property expenditures for property placed in service before 2022 in the residential energy efficient property tax credit. A "qualified biomass fuel property expenditure" is an expenditure for property which 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 2022 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 2022 for investment in such property that operates at a thermal output efficiency of at least 80%.