BTEC Applauds Introduction of Biomass Thermal
Utilization Act; Thanks Reps. Kelly and Welch, and Sens. Collins and
King for Bipartisan Lead
Washington, DC - The Biomass Thermal
Energy Council (BTEC) applauds the introduction of the Biomass
Thermal Utilization Act (BTU Act) in the House (H.R. 3161) and Senate
(S. 1480).
Jeff Serfass, Executive Director of BTEC, stated,
"the BTU Act is a significant step towards achieving parity in
tax treatment between modern wood heating and virtually all other
renewable energy technologies. We welcome the bipartisan support this
bill has achieved from Senators and members of Congress across the
county."
The BTU Act corrects an oversight dating to the passage
of the Energy Policy Act of 2005. It extends an investment tax credit
that already exists for other renewable energy technologies to
high-efficiency wood heating installations. The Act updates Section
25D of the tax code to make residential wood heating systems with a
Higher Heating Value (HHV) of at least 75% eligible for the
residential renewable energy investment tax credit. It also updates
Section 48 of the tax code to offer a two-tiered tax credit for
commercial wood heating installations. Systems with an HHV between 65
and 80% are limited to a 15% credit, while systems with an HHV
greater than 80% are eligible for the full 30% credit.
The lead sponsors of the House bill are Reps. Mike Kelly
(R-PA-3), Peter Welch (D-VT-1), and Ann Kuster (D-NH-2). In the
Senate, the lead sponsors are Sens. Susan Collins (R-ME), Angus King
(I-ME), Jeanne Shaheen (D-NH), Maggie Hassan (D-NH), and Jeff Merkley
(D-OR). Sens. King and Collins, and Rep. Welch, have sponsored this
legislation in the past. Rep. Kelly's first-time co-sponsorship
underscores the potential he sees for wood as a renewable heat source
in Pennsylvania.
By making modern wood heating affordable, the BTU Act
will help expand the market for this renewable fuel. Using wood for
heating instead of fossil fuels keeps energy dollars local and
creates local jobs. The BTU Act therefore helps foster energy security
and independence and encourages economic development, particularly in
rural communities.