[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1007 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1007

 To amend the Internal Revenue Code of 1986 to include biomass heating 
  appliances for tax credits available for energy-efficient building 
                     property and energy property.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 22, 2013

 Mr. King (for himself and Ms. Collins) 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 include biomass heating 
  appliances for tax credits available for energy-efficient building 
                     property and energy property.

    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 ``Biomass Thermal Utilization Act of 
2013'' or the ``BTU Act of 2013''.

SEC. 2. RESIDENTIAL ENERGY-EFFICIENT PROPERTY CREDIT FOR BIOMASS FUEL 
              PROPERTY EXPENDITURES.

    (a) Allowance of Credit.--Subsection (a) of section 25D of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of paragraph (4),
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``, and'', and
            (3) by adding at the end the following new paragraph:
            ``(6) 30 percent of the qualified biomass fuel property 
        expenditures made by the taxpayer during such year.''.
    (b) Qualified Biomass Fuel Property Expenditures.--Subsection (d) 
of section 25D of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new paragraph:
            ``(6) Qualified biomass fuel property expenditure.--
                    ``(A) In general.--The term `qualified biomass fuel 
                property expenditure' means an expenditure for 
                property--
                            ``(i) which uses the burning of biomass 
                        fuel to heat a dwelling unit located in the 
                        United States and used as a residence by the 
                        taxpayer, or to heat water for use in such a 
                        dwelling unit, and
                            ``(ii) which has a thermal efficiency 
                        rating of at least 75 percent (measured by the 
                        higher heating value of the fuel).
                    ``(B) Biomass fuel.--For purposes of this section, 
                the term `biomass fuel' means any plant-derived fuel 
                available on a renewable or recurring basis, including 
                agricultural crops and trees, wood and wood waste and 
                residues, plants (including aquatic plants), grasses, 
                residues, and fibers. Such term includes densified 
                biomass fuels such as wood pellets.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
December 31, 2013.

SEC. 3. INVESTMENT TAX CREDIT FOR BIOMASS HEATING PROPERTY.

    (a) In General.--Subparagraph (A) of section 48(a)(3) is amended by 
striking ``or'' at the end of clause (vi), by inserting ``or'' at the 
end of clause (vii), and by inserting after clause (vii) the following 
new clause:
                            ``(viii) open-loop biomass (within the 
                        meaning of section 45(c)(3)) heating property, 
                        including boilers or furnaces which operate at 
                        thermal output efficiencies of not less than 65 
                        percent (measured by the higher heating value 
                        of the fuel) and which provide thermal energy 
                        in the form of heat, hot water, or steam for 
                        space heating, air conditioning, domestic hot 
                        water, or industrial process heat, but only 
                        with respect to periods ending before January 
                        1, 2017,''.
    (b) 30 Percent and 15 Percent Credits.--
            (1) In general.--Subparagraph (A) of section 48(a)(2) is 
        amended--
                    (A) by redesignating clause (ii) as clause (iii),
                    (B) by inserting after clause (i) the following new 
                clause:
                            ``(ii) except as provided in clause (i)(V), 
                        15 percent in the case of energy property 
                        described in paragraph (3)(A)(viii), and'', and
                    (C) by inserting ``or (ii)'' after ``clause (i)'' 
                in clause (iii), as so redesignated.
            (2) Increased credit for greater efficiency.--Clause (i) of 
        section 48(a)(2)(A) is amended by striking ``and'' at the end 
        of subclause (III) and by inserting after subclause (IV) the 
        following new subclause:
                                    ``(V) energy property described in 
                                paragraph (3)(A)(viii) which operates 
                                at a thermal output efficiency of not 
                                less than 80 percent (measured by the 
                                higher heating value of the fuel),''.
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, 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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