To amend the Internal Revenue Code of 1986 to modify the investment tax credit for combined heat and power system property.

Amends the Internal Revenue Code to revise the energy tax credit for investment in combined heat and power system property to: (1) increase the capacity limitations for such property; and (2) expand the definition of such property to include property which produces electrical or mechanical energy from recovered waste energy using back-pressure turbines, rankine, sterling, kalina, or other heat engines.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2750 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 2750

To amend the Internal Revenue Code of 1986 to modify the investment tax 
          credit for combined heat and power system property.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 1, 2011

  Mr. Inslee (for himself, Mr. Bartlett, Mr. Tonko, Ms. Berkley, Mr. 
Blumenauer, Ms. Baldwin, Mr. Israel, Mr. Pascrell, Mr. Quigley, and Ms. 
   Sutton) 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 modify the investment tax 
          credit for combined heat and power system property.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PURPOSE.

    The purposes of this Act are--
            (1) to promote energy efficiency through the use of 
        combined heat and power systems by increasing limits on the 
        size of systems qualifying for tax credits under section 48(c) 
        of the Internal Revenue Code of 1986, and
            (2) to allow systems using waste energy from industrial 
        processes to produce electricity or mechanical energy to 
        qualify for the tax credits.

SEC. 2. MODIFICATIONS IN CREDIT FOR COMBINED HEAT AND POWER SYSTEM 
              PROPERTY.

    (a) Modification of Certain Capacity Limitations.--Subparagraph (B) 
of section 48(c)(3) of the Internal Revenue Code of 1986 is amended--
            (1) in clause (ii)--
                    (A) by striking ``15 megawatts'' and inserting ``25 
                megawatts'', and
                    (B) by striking ``20,000 horsepower'' and inserting 
                ``34,000 horsepower'', and
            (2) by striking clause (iii).
    (b) Inclusion of Waste Energy Recovery and Related Technologies.--
            (1) In general.--Subparagraph (A) of section 48(c)(3) of 
        such Code is amended to read as follows:
                    ``(A) Combined heat and power system property.--The 
                term `combined heat and power system property' means 
                property comprising a system which is placed in service 
                before January 1, 2017, and--
                            ``(i) which uses the same energy source for 
                        the simultaneous or sequential generation of 
                        electrical power, mechanical shaft power, or 
                        both, in combination with the generation of 
                        steam or other forms of useful thermal energy 
                        (including heating and cooling applications), 
                        and--
                                    ``(I) produces at least 20 percent 
                                of its total useful energy in the form 
                                of thermal energy which is not used to 
                                produce electrical or mechanical power 
                                (or combination thereof),
                                    ``(II) produces at least 20 percent 
                                of its total useful energy in the form 
                                of electrical or mechanical power (or 
                                combination thereof), and
                                    ``(III) has an energy efficiency 
                                percentage exceeding 60 percent, or
                            ``(ii) which produces electrical or 
                        mechanical power or usable thermal energy (in 
                        the form of steam, hot water, or other heated 
                        thermal working fluid) from recovered waste 
                        energy, including systems using--
                                    ``(I) back-pressure turbines in 
                                place of pressure-reducing valves,
                                    ``(II) rankine, sterling, kalina, 
                                or other heat engines, or
                                    ``(III) waste energy to heat a 
                                thermal working fluid to displace the 
                                need for combustion of a fuel.''.
            (2) Conforming amendment.--Section 48(c)(3)(D)(i) of such 
        Code is amended by striking ``subparagraph (A)(iii)'' and 
        inserting ``subparagraph (A)(i)(III)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, 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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