BTU Act of 2021

II 117TH CONGRESS 1ST SESSION S. 1191 To amend the Internal Revenue Code of 1986 to include biomass heating appliances in the energy credit and to extend the credit for residential energy efficient property. IN THE SENATE OF THE UNITED STATES APRIL 15, 2021 Mr. KING (for himself, Ms. COLLINS, Ms. HASSAN, and Mrs. SHAHEEN) intro- duced the following bill; which was read twice and referred to the Com- mittee on Finance A BILL To amend the Internal Revenue Code of 1986 to include biomass heating appliances in the energy credit and to extend the credit for residential energy efficient property. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Biomass Thermal Uti- 4 lization Act of 2021’’ or the ‘‘BTU Act of 2021’’. 5 SEC. 2. INVESTMENT TAX CREDIT FOR BIOMASS HEATING 6 PROPERTY. 7 (a) IN GENERAL.—Section 48(a)(3)(A) of the Inter- 8 nal Revenue Code of 1986 is amended— 9 VerDate Sep 11 2014 20:33 May 06, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1191.IS S1191 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 1191 IS (1) by striking ‘‘or’’ at the end of clause (vii), 1 (2) by adding ‘‘or’’ at the end of clause (viii), 2 and 3 (3) and by inserting after clause (viii) the fol- 4 lowing new clause: 5 ‘‘(ix) open-loop biomass heating prop- 6 erty (within the meaning of section 7 45(c)(3)) heating property, including boil- 8 ers or furnaces that operate at thermal 9 output efficiencies of not less than 75 per- 10 cent (measured by the lower heating value 11 of the fuel at nominal output), that are in- 12 stalled indoors, and that provide thermal 13 energy in the form of heat, hot water, or 14 steam for space heating, air conditioning, 15 domestic hot water, or industrial process 16 heat,’’. 17 (b) OPEN-LOOP BIOMASS HEATING PROPERTY DE- 18 FINED.—Section 48(c) of the Internal Revenue Code of 19 1986 is amended by adding at the end the following new 20 paragraph: 21 ‘‘(6) OPEN-LOOP BIOMASS HEATING PROP- 22 ERTY.— 23 VerDate Sep 11 2014 20:33 May 06, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1191.IS S1191 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 1191 IS ‘‘(A) IN GENERAL.—The term ‘open-loop 1 biomass heating property’ means any property 2 which— 3 ‘‘(i) uses open-loop biomass (as de- 4 fined in section 45(c)(3)) to produce ther- 5 mal energy in the form of heat, hot water, 6 hot air, or steam, and 7 ‘‘(ii) is used for space heating, air 8 conditioning, domestic hot water, industrial 9 process heat, or any combination of the 10 foregoing. 11 ‘‘(B) REQUIREMENTS FOR BOILERS AND 12 FURNACES.—Such term shall not include any 13 boiler or furnace unless such boiler or fur- 14 nace— 15 ‘‘(i) operates at thermal output effi- 16 ciencies of not less than 75 percent (meas- 17 ured by the lower heating value of the fuel 18 at nominal output), and 19 ‘‘(ii) is installed indoors.’’. 20 (c) ENERGY PERCENTAGE.—Section 48(a)(2)(A)(i) 21 of such Code is amended— 22 (1) by striking ‘‘and’’ at the end of subclause 23 (IV), and 24 VerDate Sep 11 2014 20:33 May 06, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1191.IS S1191 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 1191 IS (2) by adding at the end the following new sub- 1 clause: 2 ‘‘(VI) open-loop biomass heating 3 property, but only with respect to 4 property the construction of which be- 5 gins before January 1, 2029, and’’. 6 (d) EFFECTIVE DATE.—The amendments made by 7 this section shall apply to periods after December 31, 8 2020, in taxable years ending after such date, under rules 9 similar to the rules of section 48(m) of the Internal Rev- 10 enue Code of 1986 (as in effect on the day before the date 11 of the enactment of the Revenue Reconciliation Act of 12 1990). 13 SEC. 3. EXTENSION OF RESIDENTIAL ENERGY EFFICIENT 14 PROPERTY CREDIT. 15 (a) IN GENERAL.—Section 25D(h) of the Internal 16 Revenue Code of 1986 is amended by striking ‘‘December 17 31, 2023’’ and inserting ‘‘December 31, 2028’’. 18 (b) APPLICATION OF PHASEOUT.—Section 25D(g) of 19 such Code is amended— 20 (1) by striking ‘‘before January 1, 2023’’ in 21 paragraph (2) and inserting ‘‘before January 1, 22 2022’’, 23 (2) by striking ‘‘and’’ at the end of paragraph 24 (2), 25 VerDate Sep 11 2014 20:33 May 06, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1191.IS S1191 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 1191 IS (3) by redesignating paragraph (3) as para- 1 graph (5) and by inserting after paragraph (2) the 2 following new paragraphs: 3 ‘‘(3) in the case of property placed in service 4 after December 31, 2021, and before January 1, 5 2027, 30 percent, 6 ‘‘(4) in the case of property placed in service 7 after December 31, 2026, and before January 1, 8 2028, 26 percent, and’’, and 9 (4) by striking ‘‘December 31, 2022, and before 10 January 1, 2024’’ in paragraph (5) (as so redesig- 11 nated) and inserting ‘‘December 31, 2027, and be- 12 fore January 1, 2029’’. 13 (c) EFFECTIVE DATE.—The amendments made by 14 this section shall apply to expenditures made after the 15 date of the enactment of this Act. 16 Æ VerDate Sep 11 2014 20:33 May 06, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S1191.IS S1191 pamtmann on DSKBC07HB2PROD with BILLS