Biomass Facility Construction Act

Summary#

This bill would change the federal tax code to give tax credits for certain new biomass energy facilities. It adds a rule that qualified property that is part of a specified biomass facility is treated as energy property and gets an energy percentage of 30 percent for the investment credit. The bill updates the production tax credit rules so they apply to facilities described in section 45(d) paragraphs (2) and (3) (open- and closed-loop biomass) that begin construction after the act is enacted. It also removes earlier date limits for those facilities so the usual subparagraph limits do not apply if construction begins after enactment. The changes apply only to facilities whose construction begins after the date the act becomes law.

What it means for you#

• If you plan to build an open- or closed-loop biomass facility and start construction after this law takes effect, equipment that qualifies may be eligible for a 30% investment energy credit.
• Such new facilities would also be eligible for the production tax credit under the updated timing rules in section 45(d).
• The bill affects only facilities that begin construction after the law is enacted.

Expenses#

No publicly available information on estimated federal cost or revenue effects of this bill.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.