[Congressional Record Volume 156, Number 48 (Thursday, March 25, 2010)]
[Senate]
[Page S2129]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. SHAHEEN (for herself, Ms. Murkowski, Mr. Begich, and Mr. 
        Crapo):
  S. 3188. A bill to amend the Internal Revenue Code of 1986 to provide 
an investment tax credit for biomass heating property; to the Committee 
on Finance.
  Mrs. SHAHEEN. Mr. President, I rise today to introduce legislation 
that will help grow the U.S. manufacturing base in alternative energy 
technologies, create jobs and help get our country running on clean 
energy.
  We have known for decades that our Nation's dependence on foreign oil 
undermines our economic and national security.
  According to the Department of Energy, New Hampshire households are 
some of the most petroleum dependent in the country due to our reliance 
on heating oil to provide heat. Almost 60 percent of homes in New 
Hampshire use oil for heating purposes. Many New Hampshire businesses--
large and small--are also dependent on heating oil.
  In fact, thermal energy, or heat, accounts for roughly 30 percent of 
total U.S. energy consumption. Thermal energy is used every day by 
homes, businesses and industrial facilities across the country for a 
variety of needs--most commonly for space heating, heating water and 
industrial processes that require heat.
  We need to move away from our dependence on fossil fuels and I am 
convinced that biomass, used effectively and sustainably, can help to 
do that by, in part, meeting our country's thermal energy needs.
  Forests are one of our Nation's greatest assets. In my home State of 
New Hampshire, the second most forested State in the country, forestry 
is an important part of our economy. Forestland supports a thriving 
forest products industry and provides many outdoor recreational 
opportunities that play a key role in attracting tourists to the State. 
But I think greater potential exists for our forests in New Hampshire 
and across the country to help meet our energy challenges--using 
biomass to meet the heating needs of our homes, businesses and 
communities.
  New Hampshire and a number of other States are already leading the 
way to address how high efficiency biomass systems can cut our energy 
dependence on foreign oil and support our forest industry. Communities 
and businesses across New Hampshire are putting our State's immense 
biomass resources--from forestry and agricultural residues--to use for 
creating electricity and thermal energy. These investments in clean, 
renewable biomass energy are supporting our forest industry and also 
creating new industries and jobs across New Hampshire.
  There is so much untapped potential for biomass energy, and that is 
what my legislation is about.
  The American Renewable Biomass Heating Act would provide an 
investment tax credit, ITC, of 30 percent of the cost of installing a 
high efficiency biomass system in commercial and industrial buildings. 
The tax credit would be available for biomass heating systems placed in 
service on or before December 31, 2013.
  By incentivizing high efficiency biomass boilers and furnaces, we can 
help to replace our reliance on fossil fuel with clean, domestically 
produced renewable energy.
  This bill would also put biomass on an even playing field with other 
alternative energy technologies and fuel sources, such as wind, solar, 
and geothermal. Thus far, Federal policies to promote the development 
and use of alternative energy have focused largely on transportation 
fuels, such as ethanol and biodiesel, and electricity from hydro, wind, 
and solar. My legislation puts high efficiency biomass on an even 
playing field with other alternative energy technologies.
  Most importantly, my legislation will help jumpstart the domestic 
manufacturing base. For years, European countries have invested in and 
incentivized the development of these technologies. There is no reason 
why we cannot build this equipment right here in the U.S.
  The bipartisan legislation I am introducing today with Senators Lisa 
Murkowski, Mark Begich and Mike Crapo will provide the incentives 
businesses are looking for to invest in clean energy. Our legislation 
is about American power--clean energy technologies and equipment that 
are made right here in America and create jobs for American workers.
  Mr. President, I want to thank my colleagues for joining me in 
introducing this important, job-creating legislation. I urge my 
colleagues in the Senate to pass the American Renewable Biomass Heating 
Act.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3188

       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 ``American Renewable Biomass 
     Heating Act of 2010''.

     SEC. 2. INVESTMENT TAX CREDIT FOR BIOMASS HEATING PROPERTY.

       (a) In General.--Subparagraph (A) of section 48(a)(3) of 
     the Internal Revenue Code of 1986 (defining energy property) 
     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) biomass heating property, including boilers or 
     furnaces which operate at output efficiencies greater than 75 
     percent 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, 2014,''.
       (b) 30 Percent Credit.--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) and by inserting after 
     subclause (IV) the following new subclause:

       ``(V) energy property described in paragraph (3)(A)(viii), 
     and''.

       (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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