A bill to amend the Internal Revenue Code of 1986 to establish a tax credit for qualified combined heat and power system property, and for other purposes.
Congress considers new tax credit to boost combined heat and power systems for businesses
Legislative Progress
Key Points
- Congress would create a tax credit equal to 10% of the cost of certain combined heat and power systems put into service.
- The credit could be larger (an extra 10 percentage points) if the project meets “domestic content” rules or is located in an “energy community.”
- To qualify, the system must meet efficiency and output rules (it must produce both useful heat and useful power) and construction must begin on or after January 1, 2025.
- Very large systems would face limits: credit phases down above 25 megawatts and systems above 50 megawatts would not qualify.
- This mainly affects businesses, factories, hospitals, and campuses that might install these systems; it could lower their tax bills and encourage on-site energy upgrades.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
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News
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Source Information
Document Type
Congressional Bill
Official Title
A bill to amend the Internal Revenue Code of 1986 to establish a tax credit for qualified combined heat and power system property, and for other purposes.
Data Sources
Sponsor
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