S1345-119

1. Short title This Act may be cited as the America's First Fuels Act.

3. Investment tax credit for biomass heating property Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48E the following new section: For purposes of section 46, the open-loop biomass heating property credit for any taxable year is 30 percent of the basis of the open-loop biomass heating property placed in service during such taxable year. For purposes of this section— The term open-loop biomass heating property means any property which— uses open-loop biomass (as defined in section 45(c)(3)) to produce thermal energy in the form of heat, hot water, hot air, or steam, and is used for space heating, air conditioning, domestic hot water, industrial process heat, or any combination of the foregoing. Such term shall not include any boiler or furnace unless such boiler or furnace— operates at thermal output efficiencies of not less than 75 percent (measured by the lower heating value of the fuel at nominal output), is installed indoors, operates at a scale smaller than 50 MMBtu, and is equipped with an electrostatic precipitator or other similar emissions control technology. Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section. Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a). Section 46 of such Code is amended by striking and at the end of paragraph (6), by striking the period at the end of paragraph (7) and inserting , and, and by adding at the end the following new paragraph: the open-loop biomass heating property credit. Section 49(a)(1)(C) of such Code is amended by striking and at the end of clause (vii), by striking the period at the end of clause (viii), and by adding at the end the follow new clause: the basis of any open-loop biomass heating property credit. Section 50(a)(2)(E) of such Code is amended by striking or 48E(e) and inserting 48E(e), or 48F(c)(2). The table of sections for subpart D of part IV of subchapter A of chapter 1 of subtitle A of such Code is amended by adding at the end the following new item: The amendments made by this section shall apply to periods after December 31, 2025, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). 48F.Open-loop biomass heating property credit(a)In generalFor purposes of section 46, the open-loop biomass heating property credit for any taxable year is 30 percent of the basis of the open-loop biomass heating property placed in service during such taxable year. (b)Open-Loop biomass heating propertyFor purposes of this section—(1)In generalThe term open-loop biomass heating property means any property which—(A)uses open-loop biomass (as defined in section 45(c)(3)) to produce thermal energy in the form of heat, hot water, hot air, or steam, and(B)is used for space heating, air conditioning, domestic hot water, industrial process heat, or any combination of the foregoing.(2)Requirements for boilers and furnacesSuch term shall not include any boiler or furnace unless such boiler or furnace—(A)operates at thermal output efficiencies of not less than 75 percent (measured by the lower heating value of the fuel at nominal output), (B)is installed indoors, (C)operates at a scale smaller than 50 MMBtu, and(D)is equipped with an electrostatic precipitator or other similar emissions control technology.(c)Other rules(1)Special rule for property financed by tax-exempt bondsRules similar to the rule under section 45(b)(3) shall apply for purposes of this section. (2)Certain Progress Expenditure Rules Made ApplicableRules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a).. (8)the open-loop biomass heating property credit.. (ix)the basis of any open-loop biomass heating property credit.. Sec. 48F. Open-loop biomass heating property credit..

48F. Open-loop biomass heating property credit For purposes of section 46, the open-loop biomass heating property credit for any taxable year is 30 percent of the basis of the open-loop biomass heating property placed in service during such taxable year. For purposes of this section— The term open-loop biomass heating property means any property which— uses open-loop biomass (as defined in section 45(c)(3)) to produce thermal energy in the form of heat, hot water, hot air, or steam, and is used for space heating, air conditioning, domestic hot water, industrial process heat, or any combination of the foregoing. Such term shall not include any boiler or furnace unless such boiler or furnace— operates at thermal output efficiencies of not less than 75 percent (measured by the lower heating value of the fuel at nominal output), is installed indoors, operates at a scale smaller than 50 MMBtu, and is equipped with an electrostatic precipitator or other similar emissions control technology. Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section. Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a).