,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #biga  ,,in ,,the ,,house ,,of  
,,representatives  ,august #a1 #bjac    
,mr4 ,tonko introduced the following    
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to encourage the        
deployment of highly efficient combined 
heat and power property1 and for other  
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,innovative ,energy 
,systems ,act of #bjac4  #b4 ,investment
 tax credit for highly efficient        
combined heat and power system property 
7a7 ,in general ,clause 7i7 of section  
#dh7;a77#b77;,a7 of the ,internal       
,revenue ,code of #aihf is amended by   
striking and at the end of subclause    
7,,iii71 by redesignating subclause     
7,,iv7 as subclause 7,v71 and by        
inserting after subclause 7,,iii7 the   
following new subclause3  7,,iv7 energy 
property described in paragraph         
7#c77;,a77viii71 and  4  7b7 ,treated as

 energy property ,subparagraph 7,a7 of  
section #dh7;a77#c7 of such ,code is    
amended by striking or at the end of    
clause 7vi71 by inserting or at the end 
of clause 7vii71 and by adding at the   
end the following new clause3  7viii7   
highly efficient combined heat and power
 system property1  4  7c7 ,highly       
efficient combined heat and power system
 property ,subsection 7c7 of section #dh
 of such ,code is amended by adding at  
the end the following new paragraph3    
7#e7 ,highly efficient combined heat and
 power system property  7,a7 ,highly    
efficient combined heat and power system
 property ,the term highly efficient    
combined heat and power system property 
means property at an industrial1        
commercial1 or institutional facility   
comprising a system which--  7i7 uses   
the same energy source for the          
simultaneous or sequential generation of
 electrical power1 mechanical shaft     
power1 or both1 in combination with the 
generation of steam or other forms of   

useful thermal energy 7including heating
 and cooling applications71  7ii7 has a 
system design that provides an energy   
efficiency percentage of at least #gj   
percent1 and  7iii7 is placed in service
 before ,january #a1 #bjag4  7,b7       
,limitation  7i7 ,in general ,in the    
case of highly efficient combined heat  
and power system property with an       
electrical capacity in excess of the    
applicable capacity1 the credit under   
subsection 7a77#a7 7determined without  
regard to this paragraph7 with respect  
to such property for the taxable year in
 which such property was placed in      
service shall not exceed the amount     
which bears the same ratio to such      
credit as the applicable capacity bears 
to the capacity of such property4  7ii7 
,applicable capacity ,for purposes of   
clause 7i71 the term applicable capacity
 means #be megawatts or a mechanical    
energy capacity of more than #cd1jjj    
horsepower or an equivalent combination 
of electrical and mechanical capacities4

  7,c7 ,institutional facility ,the term
 institutional facility means a hospital
 or a facility of an educational        
organization described in section       
#agj7;b77#a77;,a77ii74  7,d7 ,commercial
 facility ,the term commercial facility 
shall not include any facility of a     
utility4  4  7d7 ,effective date ,the   
amendments made by this section shall   
apply to property placed in service     
after the date of the enactment of this 
,act4