A bill 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 combined heat and power systems, which use one energy source to make both electricity or mechanical power and useful heat or cooling. The credit would equal 10 percent of the cost basis of qualifying equipment placed in service, with an added 10 percentage points for projects meeting domestic content rules and another 10 percentage points for projects in energy communities. To qualify, a system must be over 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. Systems over 50 megawatts would not qualify, and the credit would be reduced for systems over 25 megawatts.

Full text and official record on Congress.gov

Sponsors

• Marsha Blackburn Republican sponsor
• 0 cosponsors