US SB1345

Increases the residential energy efficient home improvement credit limit for biomass stoves and boilers from the current aggregate cap to $10,000 for biomass heating property, while maintaining a $2,000 limit for heat pumps and heat pump water heaters

Creates a new 30% investment tax credit (Section 48F) for commercial open-loop biomass heating property that produces thermal energy for space heating, air conditioning, hot water, or industrial process heat

Requires qualifying boilers and furnaces to meet specific standards: minimum 75% thermal output efficiency, indoor installation, capacity under 50 MMBtu, and equipped with electrostatic precipitators or similar emissions control technology

Applies to property placed in service after December 31, 2025

Introduced April 8, 2025 by Senators King (I-ME), Collins (R-ME), and Shaheen (D-NH) and referred to the Senate Finance Committee