S. 1345

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to increase the limitation on the credit for biomass stoves and boilers and to include biomass heating appliances in the energy credit.

IN THE SENATE OF THE UNITED STATES · April 8, 2025 · Sponsor: Mr. King · Committee: Committee on Finance

Table of contents

• S. 1345
  • Sec. 48F. Open-loop biomass heating property credit.

Sec. 48F. Open-loop biomass heating property credit.

• (a) In general
  • For purposes of section 46, the open-loop biomass heating property credit for any taxable year is 30 percent of the basis of the open-loop biomass heating property placed in service during such taxable year.
  • In general
• (b) Open-Loop biomass heating property
  • For purposes of this section—
  • (1) In general
    • The term open-loop biomass heating property means any property which—
      • uses open-loop biomass (as defined in section 45(c)(3)) to produce thermal energy in the form of heat, hot water, hot air, or steam, and
      • is used for space heating, air conditioning, domestic hot water, industrial process heat, or any combination of the foregoing.
  • (2) Requirements for boilers and furnaces
    • Such term shall not include any boiler or furnace unless such boiler or furnace—
      • operates at thermal output efficiencies of not less than 75 percent (measured by the lower heating value of the fuel at nominal output),
      • is installed indoors,
      • operates at a scale smaller than 50 MMBtu, and
      • is equipped with an electrostatic precipitator or other similar emissions control technology.
• (c) Other rules
  • (1) Special rule for property financed by tax-exempt bonds
    • Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section.
  • (2) Certain Progress Expenditure Rules Made Applicable
    • Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a).