Bill Summary
This legislation, known as the "Waste Heat to Power Investment Tax Credit Act," aims to amend the Internal Revenue Code of 1986 to provide a tax credit for investments in waste heat to power technology. This type of technology uses waste heat from industrial processes or pressure drops in gas to generate electricity. The bill defines "waste heat to power property" and "qualified waste heat resource" and sets limitations on the tax credit based on the basis and capacity of the property. The amendments made by this bill will apply to taxable years after the date of enactment and will follow similar rules as section 48(m) of the Internal Revenue Code of 1986.
Possible Impacts
1. This legislation could potentially benefit businesses or individuals who are involved in waste heat to power technology, as it provides an investment tax credit for this type of property. This could encourage more investment in this technology and potentially create job opportunities in the industry.
2. On the other hand, this legislation could also limit the amount of credit a business or individual can claim for their waste heat to power property. This may impact the financial benefits for those who have invested in this technology.
3. The time limitations set in this legislation may affect the timing of construction for waste heat to power property. The construction must begin before January 1, 2027 in order to be eligible for the investment tax credit, which could potentially create a rush for businesses and individuals to start construction before the deadline.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2283 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 2283
To amend the Internal Revenue Code of 1986 to provide an investment tax
credit for waste heat to power technology.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 25, 2019
Mr. Carper (for himself and Mr. Cardin) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide an investment tax
credit for waste heat to power technology.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Waste Heat to Power Investment Tax
Credit Act''.
SEC. 2. INVESTMENT CREDIT FOR WASTE HEAT TO POWER PROPERTY.
(a) In General.--Section 48(a)(3)(A) of the Internal Revenue Code
of 1986 is amended--
(1) at the end of clause (vi), by striking ``or'';
(2) at the end of clause (vii), by inserting ``or'' after
the comma; and
(3) by adding at the end the following:
``(viii) waste heat to power property,''.
(b) Definitions and Limitations.--Section 48(c) of the Internal
Revenue Code of 1986 is amended by adding at the end the following:
``(5) Waste heat to power property.--
``(A) In general.--The term `waste heat to power
property' means property--
``(i) comprising a system which generates
electricity through the recovery of a qualified
waste heat resource, and
``(ii) the construction of which begins
before January 1, 2027.
``(B) Qualified waste heat resource.--The term
`qualified waste heat resource' means--
``(i) exhaust heat or flared gas from an
industrial process that does not have, as its
primary purpose, the production of electricity,
and
``(ii) a pressure drop in any gas for an
industrial or commercial process.
``(C) Limitations.--
``(i) In general.--For purposes of
subsection (a)(1), the basis of any waste heat
to power property taken into account under this
section shall not exceed the excess of--
``(I) the basis of such property,
over
``(II) the fair market value of
comparable property which does not have
the capacity to capture and convert a
qualified waste heat resource to
electricity.
``(ii) Capacity limitation.--The term
`waste heat to power property' shall not
include any property comprising a system if
such system has a capacity in excess of 50
megawatts.''.
(c) Effective Date.--The amendments made by this section shall
apply to periods after the date of enactment of this Act, 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).
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