119-s1345

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1345 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1345

 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.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 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

_______________________________________________________________________

 A BILL

 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:

``

SEC. 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:

``

Sec. 48F. Open-loop biomass heating property credit.''.
            (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).
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