,,ii #aafth ,,congress #ast ,session ,s4 #fbh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #bh1 #bjai,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 #bjai or the ,,btu ,act of #bjai4 #b4 ,residential energy-efficient property credit for biomass fuel property expenditures 7a7 ,allowance of credit ,section #be;,d7a7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in paragraph 7#d71 by striking and at the end1 7#b7 in paragraph 7#e71 by adding and at the end1 and 7#c7 by inserting after paragraph 7#e7 the following3 7#f7 the qualified biomass fuel property expenditures1 4 7b7 ,qualified biomass fuel property expenditures ,section #be;,d7d7 of such ,code 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 ,applicable percentage ,subsection 7g7 of section #be;,d of such ,code is amended-- 7#a7 by redesignating paragraphs 7#a71 7#b71 and 7#c7 as subparagraphs 7,a71 7,b71 and 7,c71 respectively1 and by moving such subparagraphs 7as so redesignated7 #b ems to the right1 7#b7 by striking ,for purposes of and inserting the following3 7#a7 ,in general ,except as provided under paragraph 7#b71 for purposes of 1 and 7#c7 by adding at the end the following3 7#b7 ,applicable percentage for qualified biomass fuel property expenditures ,in the case of any qualified biomass fuel property expenditures made by the taxpayer during the taxable year1 the applicable percentage shall be #cj percent4 4 7d7 ,termination ,subsection 7h7 of section #be;,d of such ,code is amended to read as follows3 7h7 ,termination 7#a7 ,in general ,except as provided under paragraph 7#b71 the credit allowed under this section shall not apply to property placed in service after ,december #ca1 #bjba4 7#b7 ,application to qualified biomass fuel property ,in the case of property described in subsection 7d77#f71 the credit allowed under this section shall not apply to property placed in service after ,december #ca1 #bjbc4 4 7e7 ,effective date ,the amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after ,december #ca1 #bjah4 #c4 ,investment tax credit for biomass heating property 7a7 ,in general ,section #dh7;a77#c77;,a7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking or at the end of clause 7vi71 7#b7 by adding or at the end of clause 7vii71 and 7#c7 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 that operate at thermal output efficiencies of not less than #fe percent 7measured by the higher heating value of the fuel7 and that provide thermal energy in the form of heat1 hot water1 or steam for space heating1 air conditioning1 domestic hot water1 or industrial process heat1 4 7b7 #cj percent and #ae percent credits 7#a7 ,energy percentage 7,a7 ,in general ,section #dh7;a77#b77;,a7 of such ,code is amended-- 7i7 by striking and at the end of clause 7i77,,iv71 7ii7 by redesignating clause 7ii7 as clause 7iii71 and 7iii7 by inserting after clause 7i7 the following new clause3 7ii7 in the case of energy property described in paragraph 7#c77;,a77viii7 the construction of which begins before ,january #a1 #bjbd1 #ae percent 7#cj percent in the case of any such property which operates at a thermal output efficiency of not less than #hj percent 7measured by the higher heating value of the fuel771 and 4 7,b7 ,conforming amendment ,section #dh7;a77#b77;,a77iii7 of such ,code1 as so redesignated1 is amended by inserting or 7ii7 after clause 7i74 7c7 ,effective date ,the amendments made by this section shall apply to periods after ,december #ca1 #bjah1 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