[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1345 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 1345
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
Mr. King (for himself, Ms. Collins, and Mrs. Shaheen) 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 increase the limitation
on the credit for biomass stoves and boilers and to include biomass
heating appliances 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 ``America's First Fuels Act''.
SEC. 2. INCREASED LIMITATION FOR BIOMASS STOVES AND BOILERS UNDER
ENERGY EFFICIENT HOME IMPROVEMENT CREDIT.
(a) In General.--Section 25C(b)(5) of the Internal Revenue Code of
1986 is amended by striking ``shall not, in the aggregate, exceed'' and
all that follows and inserting the following: ``shall not exceed--
``(A) with respect to amounts paid or incurred, in
the aggregate, for property described in clauses (i)
and (ii) of subsection (d)(2)(A), $2,000, and
``(B) with respect to amounts paid or incurred, in
the aggregate, for property described in subsection
(d)(2)(B), $10,000.''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2025.
SEC. 3. INVESTMENT TAX CREDIT FOR BIOMASS HEATING PROPERTY.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 48E the following new section:
``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.
``(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--
``(A) 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
``(B) 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--
``(A) operates at thermal output efficiencies of
not less than 75 percent (measured by the lower heating
value of the fuel at nominal output),
``(B) is installed indoors,
``(C) operates at a scale smaller than 50 MMBtu,
and
``(D) 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).''.
(b) Conforming Amendments.--
(1) Section 46 of such Code is amended by striking ``and''
at the end of paragraph (6), by striking the period at the end
of paragraph (7) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(8) the open-loop biomass heating property credit.''.
(2) Section 49(a)(1)(C) of such Code is amended by striking
``and'' at the end of clause (vii), by striking the period at
the end of clause (viii), and by adding at the end the follow
new clause:
``(ix) the basis of any open-loop biomass
heating property credit.''.
(3) Section 50(a)(2)(E) of such Code is amended by striking
``or 48E(e)'' and inserting ``48E(e), or 48F(c)(2)''.
(4) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of subtitle A of such Code is amended
by adding at the end the following new item:
``Sec. 48F. Open-loop biomass heating property credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2025, 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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