Bill > S3531

This bill establishes a new tax credit for businesses that install qualified combined heat and power (CHP) systems, which are systems that simultaneously generate electricity or mechanical power and useful thermal energy (like heating or cooling) from the same energy source, meeting specific efficiency and output requirements. The credit will be equal to 10 percent of the cost of the CHP property placed in service, with potential 10 percentage point increases for projects using domestic content or located in "energy communities" (areas undergoing economic transition due to fossil fuel industry decline). The bill defines CHP property based on its ability to produce both electrical/mechanical power and thermal energy, its overall energy efficiency percentage, and sets limits on the system's capacity to qualify for the credit, with specific rules for systems using biomass. These provisions are intended to encourage the adoption of more efficient energy generation technologies, with the credit generally applying to property whose construction begins after December 31, 2024.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3531/all-info