[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4751 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4751

To amend the Internal Revenue Code of 1986 to encourage the deployment 
  of highly efficient combined heat and power property, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 3, 2010

    Mr. Tonko (for himself, Mr. Davis of Illinois, and Ms. Berkley) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to encourage the deployment 
  of highly efficient combined heat and power property, and for other 
                               purposes.

    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 ``Innovative Energy Systems Act of 
2010''.

SEC. 2. INVESTMENT TAX CREDIT FOR HIGHLY EFFICIENT COMBINED HEAT AND 
              POWER SYSTEM PROPERTY.

    (a) In General.--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)(viii), and''.
    (b) Treated as Energy Property.--Subparagraph (A) of section 
48(a)(3) of such Code 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) highly efficient combined heat and 
                        power system property,''.
    (c) Highly Efficient Combined Heat and Power System Property.--
Subsection (c) of section 48 of such Code is amended by adding at the 
end the following new paragraph:
            ``(5) Highly efficient combined heat and power system 
        property.--
                    ``(A) Highly efficient combined heat and power 
                system property.--The term `highly efficient combined 
                heat and power system property' means property at an 
                industrial, commercial, or institutional facility 
                comprising a system which--
                            ``(i)(I) uses the same energy source for 
                        the simultaneous or sequential generation of 
                        electrical power, mechanical shaft power, or 
                        both, in combination with the generation of 
                        steam or other forms of useful thermal energy 
                        (including heating and cooling applications),
                            ``(II) has a system design that provides an 
                        energy efficiency percentage of at least 70 
                        percent, and
                            ``(III) is placed in service before January 
                        1, 2017, or
                            ``(ii)(I) recovers waste energy from which 
                        electricity is generated through the 
                        modification of an existing facility or 
                        addition of a new facility, and
                            ``(II) is placed in service before January 
                        1, 2017.
                    ``(B) Limitation.--
                            ``(i) In general.--In the case of highly 
                        efficient combined heat and power system 
                        property with an electrical capacity in excess 
                        of the applicable capacity, the credit under 
                        subsection (a)(1) (determined without regard to 
                        this paragraph) with respect to such property 
                        for the taxable year in which such property was 
                        placed in service shall not exceed the amount 
                        which bears the same ratio to such credit as 
                        the applicable capacity bears to the capacity 
                        of such property.
                            ``(ii) Applicable capacity.--For purposes 
                        of clause (i), the term `applicable capacity' 
                        means 25 megawatts or a mechanical energy 
                        capacity of more than 34,000 horsepower or an 
                        equivalent combination of electrical and 
                        mechanical capacities.
                    ``(C) Institutional facility.--The term 
                `institutional facility' means a hospital or a facility 
                of an educational organization described in section 
                170(b)(1)(A)(ii).
                    ``(D) Commercial facility.--The term `commercial 
                facility' shall not include any facility of a 
                utility.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.
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