H.R. 6824 establishes a new 10 percent federal tax credit for businesses that install qualified combined heat and power systems—equipment that simultaneously generates electricity and usable heat from a single fuel source with at least 60 percent energy efficiency. The credit applies to systems placed in service after December 31, 2024, that meet specific performance standards and capacity limits (between 25 and 50 megawatts of electrical capacity or equivalent mechanical power). The bill also provides bonus credits of an additional 10 percentage points for systems using domestically made components and another 10 percentage points for projects built in economically disadvantaged "energy communities," potentially doubling the credit in certain cases. For biomass-powered systems, the credit amount is adjusted based on efficiency levels relative to the 60 percent standard. The legislation includes conforming changes to align the tax code with this new credit and directs the Treasury Secretary to issue implementing regulations.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.