H.R. 9746 – Biomass Facility Construction Act

AI-Generated Summary

Updated July 18, 2026 at 2:05 PM UTC

The Biomass Facility Construction Act amends the Internal Revenue Code to give tax incentives for building open‑ and closed‑loop biomass plants. It adds an investment credit for qualified equipment in such facilities and expands the production credit to cover new plants built after the law’s enactment, while also lifting some existing restrictions. The credits apply only to facilities whose construction begins after the act becomes law.

Key Provisions

Creates an investment tax credit for qualified property in designated biomass facilities, treating that property as energy property with a 30% energy content.
Extends the production tax credit to new open‑ and closed‑loop biomass facilities whose construction begins after the law takes effect, updating the eligibility dates in the code.
Removes certain limitation rules that previously applied to these production credits for the newly‑qualified facilities.
All credit provisions apply only to facilities that start construction after the act is enacted.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

July 16, 2026

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HouseIntro Referral

Introduced in House

July 16, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

July 16, 2026

Bill Text

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Introduced in HouseIssued July 16, 2026

I

119th CONGRESS

2d Session

H. R. 9746

IN THE HOUSE OF REPRESENTATIVES

July 16, 2026

Mr. Kiley of California introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide investment and production credits for open- and closed-loop biomass facilities.

1.

Short title

This Act may be cited as the Biomass Facility Construction Act.

2.

Reinstatement of investment and production credits for open- and closed-loop biomass facilities

(a)

Investment credit

Section 48(a) of the Internal Revenue Code of 1986 is amended—

(1)

by redesignating paragraph (16) as paragraph (17), and

(2)

by inserting after paragraph (15) the following new paragraph:

(16)

Application of credit to certain biomass facilities

(A)

In general

In the case of any qualified property (as defined in paragraph (5)(D)) which is part of a specified biomass facility—

(i)

such property shall be treated as energy property for purposes of this section, and

(ii)

the energy percentage with respect to such property is 30 percent.

(B)

Specified biomass facility

For purposes of this paragraph, the term specified biomass facility means any facility—

(i)

described in paragraph (2) or (3) of section 45(d), and

(ii)

the construction of which begins after the date of the enactment of the Biomass Facility Construction Act.

.

(b)

Production credit

(1)

Application to new biomass facilities

Section 45(d) of the Internal Revenue Code of 1986 is amended—

(A)

in paragraphs (2) and (3), by inserting or after the date of the enactment of the Biomass Facility Construction Act, after January 1, 2025, each place it appears, and

(B)

in paragraph (3)(A)(ii), by inserting , or after the date of the enactment of the Biomass Facility Construction Act after January 1, 2025.

(2)

Termination of certain limitations

Section 45(b)(4) of such Code is amended by adding at the end the following new subparagraph:

(C)

Termination

Subparagraphs (A) and (B) shall not apply to any facility described in paragraph (2) or (3) of subsection (d) the construction of which begins after the date of the enactment of the Biomass Facility Construction Act.

.

(c)

Effective date

The amendments made by this section shall apply to facilities the construction of which begins after the date of the enactment of this Act.