S.Amdt. 3589

SA 3589. Mr. KING (for himself, Ms. Collins, Ms. Ayotte, Mrs.
Shaheen, and Ms. Baldwin) submitted an amendment intended to be
proposed to amendment SA 3464 submitted by Mr. Thune (for himself and
Mr. Nelson) to the bill H.R. 636, to amend the Internal Revenue Code of
1986 to permanently extend increased expensing limitations, and for
other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ____. RESIDENTIAL ENERGY-EFFICIENT PROPERTY CREDIT FOR
BIOMASS FUEL PROPERTY EXPENDITURES.

(a) Allowance of Credit.--Subsection (a) of section 25D of
the Internal Revenue Code of 1986 is amended--
(1) by striking ``and'' at the end of paragraph (4),
(2) by striking the period at the end of paragraph (5) and
inserting ``, and'', and
(3) by adding at the end the following new paragraph:
``(6) in the case of taxable years beginning before January
1, 2021, 30 percent of the qualified biomass fuel property
expenditures made by the taxpayer during such year.''.
(b) Qualified Biomass Fuel Property Expenditures.--
Subsection (d) of section 25D of the Internal Revenue Code of
1986 is amended by adding at the end the following new
paragraph:
``(6) Qualified biomass fuel property expenditure.--
``(A) In general.--The term `qualified biomass fuel
property expenditure' means an expenditure for property--
``(i) which uses the burning of biomass fuel to heat a
dwelling unit located in the United States and used as a
residence by the taxpayer, or to heat water for use in such a
dwelling unit, and

[[Page S1864]]

``(ii) which has a thermal efficiency rating of at least 75
percent (measured by the higher heating value of the fuel).
``(B) Biomass fuel.--For purposes of this section, the term
`biomass fuel' means any plant-derived fuel available on a
renewable or recurring basis, including agricultural crops
and trees, wood and wood waste and residues, plants
(including aquatic plants), grasses, residues, and fibers.
Such term includes densified biomass fuels such as wood
pellets.''.
(c) Effective Date.--The amendments made by this section
shall apply to expenditures paid or incurred in taxable years
beginning after December 31, 2015.

SEC. ____. INVESTMENT TAX CREDIT FOR BIOMASS HEATING
PROPERTY.

(a) In General.--Subparagraph (A) of section 48(a)(3) of
the Internal Revenue Code of 1986 is amended by striking
``or'' at the end of clause (vi), by inserting ``or'' at the
end of clause (vii), and by inserting after clause (vii) the
following new clause:
``(viii) open-loop biomass (within the meaning of section
45(c)(3)) heating property, including boilers or furnaces
which operate at thermal output efficiencies of not less than
65 percent (measured by the higher heating value of the fuel)
and which provide thermal energy in the form of heat, hot
water, or steam for space heating, air conditioning, domestic
hot water, or industrial process heat,''.
(b) 30-Percent and 15-Percent Credits.--
(1) Energy percentage.--
(A) In general.--Subparagraph (A) of section 48(a)(2) of
the Internal Revenue Code of 1986 is amended by redesignating
clause (ii) as clause (iii) and by inserting after clause (i)
the following new clause:
``(ii) except as provided in clause (i)(V), 15 percent in
the case of energy property described in paragraph
(3)(A)(viii), but only with respect to periods ending before
January 1, 2021, and''.
(B) Conforming amendment.--Subparagraph of section
48(a)(2)(A)(iii) of such Code, as so redesignated, is amended
by inserting ``or (ii)'' after ``clause (i)''.
(2) Increased credit for greater efficiency.--Clause (i) of
section 48(a)(2)(A) of such Code is amended by striking
``and'' at the end of subclause (III) and by inserting after
subclause (IV) the following new subclause:

``(V) energy property described in paragraph (3)(A)(viii)
which operates at a thermal output efficiency of not less
than 80 percent (measured by the higher heating value of the
fuel), but only with respect to periods ending before January
1, 2021,''.

(c) Effective Date.--The amendments made by this section
shall apply to periods after December 31, 2015, 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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