April 8, 2025
Mr. King (for himself, Ms. Collins, and Mrs. Shaheen) introduced the following bill; which was read twice and referred to the Committee on Finance
To amend the Internal Revenue Code of 1986 to increase the limitation on the credit for biomass stoves and boilers and to include biomass heating appliances in the energy credit.
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 America's First Fuels Act
.
Sec. 2. Increased limitation for biomass stoves and boilers under energy efficient home improvement credit
(a) In general
Section 25C(b)(5) of the Internal Revenue Code of 1986 is amended by striking shall not, in the aggregate, exceed
and all that follows and inserting the following:
shall not exceed—
(A)
with respect to amounts paid or incurred, in the aggregate, for property described in clauses (i) and (ii) of subsection (d)(2)(A), $2,000, and
(B)
with respect to amounts paid or incurred, in the aggregate, for property described in subsection (d)(2)(B), $10,000.
(b) Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2025.
Sec. 3. Investment tax credit for biomass heating property
(a) In general
Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48E the following new section:
48F. Open-loop biomass heating property credit
(a) In general
For purposes of section 46, the open-loop biomass heating property credit for any taxable year is 30 percent of the basis of the open-loop biomass heating property placed in service during such taxable year.
(b) Open-Loop biomass heating property
For purposes of this section—
(1) In general
The term open-loop biomass heating property means any property which—
(A)
uses open-loop biomass (as defined in section 45(c)(3)) to produce thermal energy in the form of heat, hot water, hot air, or steam, and
(B)
is used for space heating, air conditioning, domestic hot water, industrial process heat, or any combination of the foregoing.
(2) Requirements for boilers and furnaces
Such term shall not include any boiler or furnace unless such boiler or furnace—
(A)
operates at thermal output efficiencies of not less than 75 percent (measured by the lower heating value of the fuel at nominal output),
(B)
is installed indoors,
(C)
operates at a scale smaller than 50 MMBtu, and
(D)
is equipped with an electrostatic precipitator or other similar emissions control technology.
(c) Other rules
(1) Special rule for property financed by tax-exempt bonds
Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section.
(2) Certain Progress Expenditure Rules Made Applicable
Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a).
(b) Conforming amendments
(1)
Section 46 of such Code is amended by striking and
at the end of paragraph (6), by striking the period at the end of paragraph (7) and inserting , and
, and by adding at the end the following new paragraph:
(8)
the open-loop biomass heating property credit.
(2)
Section 49(a)(1)(C) of such Code is amended by striking and
at the end of clause (vii), by striking the period at the end of clause (viii), and by adding at the end the follow new clause:
(ix)
the basis of any open-loop biomass heating property credit.
(3)
Section 50(a)(2)(E) of such Code is amended by striking or 48E(e)
and inserting 48E(e), or 48F(c)(2)
.
(4)
The table of sections for subpart D of part IV of subchapter A of chapter 1 of subtitle A of such Code is amended by adding at the end the following new item:
(c) Effective date
The amendments made by this section shall apply to periods after December 31, 2025, 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).