To amend the Internal Revenue Code of 1986 to establish a tax credit for qualified combined heat and power system property, and for other purposes.

This bill would create a new federal tax credit for businesses that build or buy new combined heat and power systems, which use one energy source to make both electricity or mechanical power and useful heat. The credit would equal 10 percent of the cost basis of the system, with an extra 10 percentage points each for projects meeting domestic content rules or located in designated energy communities. To qualify, a system must be more than 60 percent energy efficient, produce at least 20 percent of its energy as heat and at least 20 percent as power, and begin construction on or after January 1, 2025. The credit is reduced for systems larger than 25 megawatts, and systems larger than 50 megawatts are not eligible.

Full text and official record on Congress.gov

Sponsors

• Beth Van Duyne Republican sponsor
• 1 cosponsors