Loading chat...
US SB3531
Bill
Status
12/17/2025
Primary Sponsor
Marsha Blackburn
Click for details
AI Summary
-
Establishes a new 10% investment tax credit under Section 48F for qualified combined heat and power (CHP) system property placed in service, with construction beginning on or after January 1, 2025
-
CHP systems must meet specific efficiency requirements: energy efficiency exceeding 60%, with at least 20% of output as thermal energy and at least 20% as electrical or mechanical power
-
Provides bonus credits of 10 percentage points each for projects meeting domestic content requirements and for projects located in energy communities, potentially increasing the base credit to 30%
-
Limits full credit to systems with electrical capacity up to 25 megawatts (or 33,500 horsepower mechanical equivalent), with prorated credits for larger systems up to the 50 megawatt maximum
-
Systems using at least 90% biomass as fuel are exempt from the 60% efficiency threshold but receive proportionally reduced credits based on their actual efficiency percentage
Legislative Description
A bill to amend the Internal Revenue Code of 1986 to establish a tax credit for qualified combined heat and power system property, and for other purposes.
Taxation
Last Action
Read twice and referred to the Committee on Finance.
12/17/2025