Text: S.1516 — 114th Congress (2015-2016)All Information (Except Text)

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Introduced in Senate (06/04/2015)


114th CONGRESS
1st Session
S. 1516


To amend the Internal Revenue Code of 1986 to modify the energy credit to provide greater incentives for industrial energy efficiency.


IN THE SENATE OF THE UNITED STATES

June 4, 2015

Ms. Collins (for herself and Mr. Casey) 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 modify the energy credit to provide greater incentives for industrial energy efficiency.

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 “Power Efficiency and Resiliency Act” or as the “POWER Act”.

SEC. 2. Modifications in credit for combined heat and power system property.

(a) Increased energy percentage.—Clause (i) of section 48(a)(2)(A) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of subclause (III), by redesignating subclause (IV) as subclause (V), and by inserting after subclause (III) the following new subclause:

“(IV) energy property described in paragraph (3)(A)(v), and”.

(b) Modification of certain capacity limitations.—Section 48(c)(3)(B) of such Code is amended—

(1) by striking “15 megawatts” in clause (ii) and inserting “25 megawatts”,

(2) by striking “20,000 horsepower” in clause (ii) and inserting “34,000 horsepower”, and

(3) by striking clause (iii).

(c) Extension of credit for combined heat and power system property.—Section 48(c)(3)(A)(iv) of such Code is amended by striking “January 1, 2017” and inserting “January 1, 2019”.

(d) Effective date.—

(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to periods after the date of the enactment of this Act, 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).

(2) EXTENSION OF CREDIT.—The amendments made by subsection (c) shall apply to property placed in service after December 31, 2016.

SEC. 3. Energy credit for waste heat to power property.

(a) In general.—Subparagraph (A) of section 48(a)(3) of the Internal Revenue Code of 1986 is amended by striking “or” at the end of clause (vi), by inserting “or” at the end of clause (vii), and by adding at the end the following new clause:

“(viii) waste heat to power property,”.

(b) Waste heat To power property.—Subsection (c) of section 48 of such Code is amended by adding at the end the following new paragraph:

“(5) WASTE HEAT TO POWER PROPERTY.—

“(A) WASTE HEAT TO POWER PROPERTY.—The term ‘waste heat to power property’ means property comprising a system which generates electricity through the recovery of a qualified waste heat resource.

“(B) QUALIFIED WASTE HEAT RESOURCE DEFINED.—The term ‘qualified waste heat resource’ means—

“(i) exhaust heat or flared gas from any industrial process,

“(ii) waste gas or industrial tail gas that would otherwise be flared, incinerated, or vented,

“(iii) a pressure drop in any gas for an industrial or commercial process, or

“(iv) such other forms of waste heat resources as the Secretary may determine.

“(C) EXCEPTION.—The term ‘qualified waste heat resource’ does not include any heat resource from a process whose primary purpose is the generation of electricity utilizing a fossil fuel or nuclear energy.

“(D) TERMINATION.—The term ‘waste heat to power property’ shall not include any property placed in service after December 31, 2018.”.

(c) Increased energy percentage.—Clause (i) of section 48(a)(2)(A) of such Code, as amended by section 2(a) of this Act, is further amended by inserting after the new subclause (V) the following new subclause:

“(VI) energy property described in paragraph (3)(A)(viii), and”.

(d) Effective date.—The amendments made by this section shall apply to periods after the date of the enactment of this Act, 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).