Bill > S1345

This bill, called the America's First Fuels Act, proposes two key changes to the Internal Revenue Code to promote and incentivize biomass heating technologies. First, the bill increases the tax credit limit for biomass stoves and boilers under the energy efficient home improvement credit, raising the aggregate limit to $2,000 for certain property types and $10,000 for others, effective for property placed in service after December 31, 2025. Second, the bill establishes a new 30% investment tax credit for open-loop biomass heating property, which includes equipment that uses biomass to produce thermal energy for space heating, air conditioning, domestic hot water, or industrial process heat. To qualify for this credit, boilers and furnaces must meet specific requirements, including operating at high thermal efficiency (at least 75%), being installed indoors, having a scale smaller than 50 MMBtu (a unit of heat energy), and being equipped with emissions control technology like an electrostatic precipitator. These provisions aim to encourage the adoption of more efficient and environmentally friendly biomass heating technologies by providing financial incentives to both residential and commercial users.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1345/all-info