[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9746 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9746

 To amend the Internal Revenue Code of 1986 to provide investment and 
    production credits for open- and closed-loop biomass facilities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 16, 2026

   Mr. Kiley of California 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 provide investment and 
    production credits for open- and closed-loop biomass facilities.

    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 Facility Construction Act''.

SEC. 2. REINSTATEMENT OF INVESTMENT AND PRODUCTION CREDITS FOR OPEN- 
              AND CLOSED-LOOP BIOMASS FACILITIES.

    (a) Investment Credit.--Section 48(a) of the Internal Revenue Code 
of 1986 is amended--
            (1) by redesignating paragraph (16) as paragraph (17), and
            (2) by inserting after paragraph (15) the following new 
        paragraph:
            ``(16) Application of credit to certain biomass 
        facilities.--
                    ``(A) In general.--In the case of any qualified 
                property (as defined in paragraph (5)(D)) which is part 
                of a specified biomass facility--
                            ``(i) such property shall be treated as 
                        energy property for purposes of this section, 
                        and
                            ``(ii) the energy percentage with respect 
                        to such property is 30 percent.
                    ``(B) Specified biomass facility.--For purposes of 
                this paragraph, the term `specified biomass facility' 
                means any facility--
                            ``(i) described in paragraph (2) or (3) of 
                        section 45(d), and
                            ``(ii) the construction of which begins 
                        after the date of the enactment of the Biomass 
                        Facility Construction Act.''.
    (b) Production Credit.--
            (1) Application to new biomass facilities.--Section 45(d) 
        of the Internal Revenue Code of 1986 is amended--
                    (A) in paragraphs (2) and (3), by inserting ``or 
                after the date of the enactment of the Biomass Facility 
                Construction Act,'' after ``January 1, 2025,'' each 
                place it appears, and
                    (B) in paragraph (3)(A)(ii), by inserting ``, or 
                after the date of the enactment of the Biomass Facility 
                Construction Act'' after ``January 1, 2025''.
            (2) Termination of certain limitations.--Section 45(b)(4) 
        of such Code is amended by adding at the end the following new 
        subparagraph:
                    ``(C) Termination.--Subparagraphs (A) and (B) shall 
                not apply to any facility described in paragraph (2) or 
                (3) of subsection (d) the construction of which begins 
                after the date of the enactment of the Biomass Facility 
                Construction Act.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to facilities the construction of which begins after the date of 
the enactment of this Act.
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