The Biomass Thermal Utilization Act

Latest Updates

What is the BTU Act?

“Whelen Froling Boilers” is a 4 boiler installation of Froling dry chip boilers installed by Froling Energy at Whelen Engineering in Charlestown NH.

The BTU Act of 2021 seeks to recognize and promote the many economic and environmental benefits that biomass thermal energy provides by extending the existing Section 25d investment tax credit for residential biomass heating systems and opening the door to Section 48 of the Internal Revenue Code to incentivize biomass thermal (business). Currently, a host of renewable energy technologies qualify for investment tax credits for capital costs incurred in residential and commercial installations. Simply, this legislation seeks to achieve parity between biomass thermal and other renewable systems.

Why is the BTU Act important?

“PJ Noyes bldg. silo” is a containerized pellet boiler installed by Froling Energy at PJ Noyes in Lancaster NH.

The BTU Act adds high-efficiency biomass thermal technologies to the list of renewable energy technologies that currently benefit from investment tax credits under section 25D (residential) and Section 48 (business) of the tax code.

This investment credit currently applies to biomass thermal (residential), solar thermal and geothermal technologies, but not to biomass thermal (business). The BTU Act corrects this oversight. The BTU Act only qualifies the most efficient and advanced technologies for the credit.

Investment credits are needed for advanced biomass thermal technologies because of their comparatively high upfront capital cost. This “capital hurdle” must be overcome to build the market and gain economies of scale that will bring system costs down. Furthermore, through the BTU Act, biomass heating systems (business) will benefit from accelerated depreciation, improving the economics of the projects.

Similar policy has been very effective in reducing the cost of solar (PV and thermal) and geothermal technologies.

The BTU Act Resource Center


BTU Act Fact Sheet >>

Read the Senate Bill >>  |  House Bill >>

HPBA Wood and Pellet Heater Investment Tax Credit one-pager >> PFI Income Tax Credit Frequently Asked Questions >>

How can you help pass the BTU Act?

EMD Millipore Ribbon Cutting is 6 MW chip steam boiler built by AFS Energy and installed at Millipore Sigma’s plant in Jaffrey NH.

The Coalition leads efforts to gain support among representatives and senators in the House and Senate. To gain support, coalition members will be asked to contact the representatives and senators in which their organization has facilities and operations that benefit from the passage of the BTU Act. BTEC send periodic updates and prompts action for Coalition members to take.

Join the BTU Act Coalition by contacting Emanuel Wagner ( or 202-596-3974 x360

What is Biomass Thermal Energy?

“Froling Energy Dry Chip Truck Delivery”

A thermal biomass system is a stove, furnace or boiler that runs on 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. The system produces thermal energy for heating residential and commercial, as well as process heat for industrial applications.

Wood pellets, chips and cordwood are the most common fuels for biomass heating systems, although agricultural wastes will see growth in the future. Wood pellets are generally made from wood waste, compressed under heat and pressure, with no additives. They have high energy density, low moisture content, and are as easy to transport and use as traditional fossil fuels. Wood chips offer a slightly less refined form of biomass fuel.

Advanced combustion technologies allow the use of biomass fuels with very high efficiencies and low emissions. Leading technologies have been developed in Europe, and are now entering the U.S. market. Domestic U.S. manufacturers are also developing advanced technologies.

Who supports the BTU Act?


  1. 509 Fabrication Inc
  2. A.M. Logging, LLC
  3. Advanced Cyclone Systems
  4. AFS Energy Systems
  5. Allegheny Hardwood Utilization Group
  6. Alliance for Green Heat
  7. American Forest Foundation
  8. American Loggers Council
  9. American Wood Fiber
  10. Appalachian Wood Pellets Inc
  11. Area Partnership for Economic Expansion (APEX)
  12. Aries Clean Technologies
  13. Aroostook Partnership
  14. Baling Twine Farm
  15. Biomass Briquette Systems
  16. Biomass Energy Resource Center
  17. Biomass Engineering and Equipment
  18. Biomass Magazine
  19. Biomass Power Association
  20. Biomass System Supply
  21. Biomass Thermal Energy Council
  22. Boreal Heat
  23. C&D Recycling Assoication
  24. Caluwe
  25. Central Boiler
  26. Central New York Weatherization Services
  27. Clean Energy Economy MN
  28. Clean Energy NH
  29. CleanFiber
  30. Connecticut Mulch Distributors, Inc
  31. Curran Renewable Energy, LLC
  32. Cutting Edge Energy Systems
  33. Empire State Forest Products Association
  34. Energy Initiatives, Inc.
  35. Etkind Consulting LLC
  36. Fiber By-Products, Corp.
  37. Field Controls, LLC
  38. Firespeaking, LLC
  39. Forest Energy Corporation
  40. Forest Resources Association
  41. Friends of the Sun Ltd
  42. Froling Energy
  43. FutureMetrics
  44. Gogebic Community College
  45. Great Lakes Timber Professionals Association
  46. Hancock Lumber
  47. Hardwood Federation
  48. Hearth, Patio & Barbecue Association
  49. Heating the Midwest
  50. HEDGE
  51. Home Energy Raters LLC
  52. Iberia Energetica, S.A.
  53. Idaho Forest Owners Association
  54. IHB Technologies, Inc
  55. Innovative Natural Resource Solutions
  56. Integrated Energy Systems, PLLC
  57. Kerr Wood Leidal Associates
  58. Lamppa Manufacturing
  59. Lignetics, Inc.
  60. Maine Energy Systems
  61. Maine Pellet Fuels Association
  62. Maine Wood Pellet Co.
  63. Maryland Forests Association
  64. Massachusetts Clean Energy Center
  65. Massachusetts Forest Alliance
  66. Masonry Heater Association of North America
  67. Messersmith Manufacturing
  68. Metzler Forest Products LLC
  69. New England Forestry Foundation
  70. New Hampshire Timberland Owners Association
  71. New Horizon Inc
  72. Northeast Pellets, LLC
  73. Northern Forest Center
  74. Orion Advocates
  75. Pellet Fuels Institute
  76. Posko Engineering, LLC
  77. Professional Logging Contractors of Maine
  78. Prosody Consulting, LLC
  79. Q-Team Tree Service
  80. Renewable Energy Vermont
  81. Riverdale Farm and Forest
  82. Sandri Energy LLC
  83. Society for the Protection of NH Forests
  84. SunWood Biomass
  85. Sustainable Heating Outreach & Education, Inc.
  86. Sustainable Northwest
  87. T&D Wood Energy
  88. Tarm Biomass
  89. Technology Transition Corporation
  90. Travis Inductries
  91. Triple Green Products
  92. TTC Energy, LLC
  93. Vermont Energy Investment Corporation
  94. Virginia Loggers Association
  95. Warren & Baerg Mfg., Inc.
  96. Wilson Engineering Services
  97. Wisewood Energy
  98. Wood Energy Recyclers
  99. Wood Management Systems, Inc.
  100. WoodMaster Inc.

BTEC Sustaining Members