,,ii  #aacth ,,congress  #ast ,session  
,s4 #ajjg  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #bb1 #bjac
 ,mr4 ,king 7for himself and ,ms4       
,collins7 introduced the following bill2
 which was read twice and referred to   
the ,committee on ,finance  ,a ,,bill   
,to amend the ,internal ,revenue ,code  
of #aihf to include biomass heating     
appliances for tax credits available for
 energy-efficient building property and 
energy property4  #a4 ,short title ,this
 ,act may be cited as the ,biomass      
,thermal ,utilization ,act of #bjac or  
the ,,btu ,act of #bjac4  #b4           
,residential energy-efficient property  
credit for biomass fuel property        
expenditures  7a7 ,allowance of credit  
,subsection 7a7 of section #be;,d of the
 ,internal ,revenue ,code of #aihf is   
amended--  7#a7 by striking and at the  
end of paragraph 7#d71  7#b7 by striking
 the period at the end of paragraph 7#e7
 and inserting 1 and1 and  7#c7 by      
adding at the end the following new     

paragraph3  7#f7 #cj percent of the     
qualified biomass fuel property         
expenditures made by the taxpayer during
 such year4  4  7b7 ,qualified biomass  
fuel property expenditures ,subsection  
7d7 of section #be;,d of the ,internal  
,revenue ,code of #aihf is amended by   
adding at the end the following new     
paragraph3  7#f7 ,qualified biomass fuel
 property expenditure  7,a7 ,in general 
,the term qualified biomass fuel        
property expenditure means an           
expenditure for property--  7i7 which   
uses the burning of biomass fuel to heat
 a dwelling unit located in the ,united 
,states and used as a residence by the  
taxpayer1 or to heat water for use in   
such a dwelling unit1 and  7ii7 which   
has a thermal efficiency rating of at   
least #ge percent 7measured by the      
higher heating value of the fuel74  7,b7
 ,biomass fuel ,for purposes of this    
section1 the term biomass fuel means any
 plant-derived fuel available on a      
renewable or recurring basis1 including 

agricultural crops and trees1 wood and  
wood waste and residues1 plants         
7including aquatic plants71 grasses1    
residues1 and fibers4 ,such term        
includes densified biomass fuels such as
 wood pellets4  4  7c7 ,effective date  
,the amendments made by this section    
shall apply to expenditures paid or     
incurred in taxable years beginning     
after ,december #ca1 #bjac4  #c4        
,investment tax credit for biomass      
heating property  7a7 ,in general       
,subparagraph 7,a7 of section           
#dh7;a77#c7 is amended by striking or at
 the end of clause 7vi71 by inserting or
 at the end of clause 7vii71 and by     
inserting after clause 7vii7 the        
following new clause3  7viii7 open-loop 
biomass 7within the meaning of section  
#de7;c77#c77 heating property1 including
 boilers or furnaces which operate at   
thermal output efficiencies of not less 
than #fe percent 7measured by the higher
 heating value of the fuel7 and which   
provide thermal energy in the form of   

heat1 hot water1 or steam for space     
heating1 air conditioning1 domestic hot 
water1 or industrial process heat1 but  
only with respect to periods ending     
before ,january #a1 #bjag1  4  7b7 #cj  
percent and #ae percent credits  7#a7   
,in general ,subparagraph 7,a7 of       
section #dh7;a77#b7 is amended--  7,a7  
by redesignating clause 7ii7 as clause  
7iii71  7,b7 by inserting after clause  
7i7 the following new clause3  7ii7     
except as provided in clause 7i77,v71   
#ae percent in the case of energy       
property described in paragraph         
7#c77;,a77viii71 and  1 and  7,c7 by    
inserting or 7ii7 after clause 7i7 in   
clause 7iii71 as so redesignated4  7#b7 
,increased credit for greater efficiency
 ,clause 7i7 of section #dh7;a77#b77;,a7
 is amended by striking and at the end  
of subclause 7,,iii7 and by inserting   
after subclause 7,,iv7 the following new
 subclause3  7,v7 energy property       
described in paragraph 7#c77;,a77viii7  
which operates at a thermal output      

efficiency of not less than #hj percent 
7measured by the higher heating value of
 the fuel71  4  7c7 ,effective date ,the
 amendments made by this section shall  
apply to periods after the date of the  
enactment of this ,act1 in taxable years
 ending after such date1 under rules    
similar to the rules of section #dh7m7  
of the ,internal ,revenue ,code of #aihf
 7as in effect on the day before the    
date of the enactment of the ,revenue   
,reconciliation ,act of #aiij74