Waste Heat to Power Investment Tax Credit Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 5155 To amend the Internal Revenue Code of 1986 to include waste energy recovery property in the energy credit. IN THE HOUSE OF REPRESENTATIVES NOVEMBER 19, 2019 Mr. SCHNEIDER (for himself, Mr. SUOZZI, Ms. SA´NCHEZ, Mr. DANNY K. DAVIS of Illinois, Mr. BEYER, Mr. PANETTA, Mr. BLUMENAUER, and Ms. MOORE) introduced the following bill; which was referred to the Com- mittee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to include waste energy recovery property in the energy credit. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Waste Heat to Power 4 Investment Tax Credit Act of 2019’’. 5 SEC. 2. INCLUSION OF WASTE ENERGY RECOVERY PROP- 6 ERTY IN ENERGY CREDIT. 7 (a) IN GENERAL.—Section 48(a)(3)(A) of the Inter- 8 nal Revenue Code of 1986 is amended by striking ‘‘or’’ 9 VerDate Sep 11 2014 03:29 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5155.IH H5155 kjohnson on DSK79L0C42 with BILLS 2 •HR 5155 IH at the end of clause (vi), by adding ‘‘or’’ at the end of 1 clause (vii), and by adding at the end the following new 2 clause: 3 ‘‘(viii) waste energy recovery prop- 4 erty,’’. 5 (b) APPLICATION OF 30 PERCENT CREDIT.—Section 6 48(a)(2)(A)(i) of such Code is amended by striking ‘‘and’’ 7 at the end of subclauses (III) and adding at the end the 8 following new subclause: 9 ‘‘(V) waste energy recovery prop- 10 erty, and’’. 11 (c) PHASEOUT.—Section 48(a) of such Code is 12 amended by adding at the end the following new para- 13 graph: 14 ‘‘(8) PHASEOUT FOR WASTE ENERGY RECOV- 15 ERY PROPERTY.— 16 ‘‘(A) IN GENERAL.—Subject to subpara- 17 graph (B), in the case of any waste energy re- 18 covery property, the energy percentage deter- 19 mined under paragraph (2) shall be equal to— 20 ‘‘(i) in the case of any property the 21 construction of which begins after Decem- 22 ber 31, 2024, and before January 1, 2026, 23 26 percent, and 24 VerDate Sep 11 2014 03:29 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5155.IH H5155 kjohnson on DSK79L0C42 with BILLS 3 •HR 5155 IH ‘‘(ii) in the case of any property the 1 construction of which begins after Decem- 2 ber 31, 2025, and before January 1, 2027, 3 22 percent. 4 ‘‘(B) PLACED IN SERVICE DEADLINE.—In 5 the case of any energy property described in 6 subparagraph (A) which is not placed in service 7 before January 1, 2029, the energy percentage 8 determined under paragraph (2) shall be equal 9 to 0 percent.’’. 10 (d) DEFINITIONS.—Section 48(c) of such Code is 11 amended by adding at the end the following new para- 12 graph: 13 ‘‘(5) WASTE ENERGY RECOVERY PROPERTY.— 14 ‘‘(A) IN GENERAL.—The term ‘waste en- 15 ergy recovery property’ means property that 16 generates electricity solely from heat from 17 buildings or equipment if the primary purpose 18 of such building or equipment is not the genera- 19 tion of electricity. 20 ‘‘(B) CAPACITY LIMITATION.—The term 21 ‘waste energy recovery property’ shall not in- 22 clude any property which has a capacity in ex- 23 cess of 50 megawatts. 24 VerDate Sep 11 2014 03:29 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5155.IH H5155 kjohnson on DSK79L0C42 with BILLS 4 •HR 5155 IH ‘‘(C) NO DOUBLE BENEFIT.—Any waste 1 energy recovery property (determined without 2 regard to this subparagraph) which is part of a 3 system which is a combined heat and power sys- 4 tem property shall not be treated as waste en- 5 ergy recovery property for purposes of this sec- 6 tion unless the taxpayer elects to not treat such 7 system as a combined heat and power system 8 property for purposes of this section. 9 ‘‘(D) TERMINATION.—The term ‘waste en- 10 ergy recovery property’ shall not include any 11 property the construction of which does not 12 begin before January 1, 2027.’’. 13 (e) EFFECTIVE DATE.—The amendments made by 14 this section shall apply to periods after December 31, 15 2019, under rules similar to the rules of section 48(m) 16 as in effect on the day before the date of the enactment 17 of the Revenue Reconciliation Act of 1990. 18 Æ VerDate Sep 11 2014 03:29 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H5155.IH H5155 kjohnson on DSK79L0C42 with BILLS