The Biomass Thermal Utilization Act
On June 29, the BTU Act was introduced in the House (H.R. 3161) and Senate (S. 1480). Thank you to our co-sponsors from both parties for supporting modern wood heating!
Senate: Sens. King (I-ME), Collins (R-ME), Shaheen (D-NH), Hassan (D-NH), Merkley (D-OR)
House: Reps. Welch (D-VT-1), Kelly (R-PA-3), Kuster (D-NH-2)
The BTU Act Resource Center
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About the BTU Act
Switching to modern wood heating keeps energy jobs and dollars local, promotes rural economic development, and helps secure American energy independence.
High-efficiency biomass heating systems are currently not eligible for investment tax credits. This puts these systems at a competitive disadvantage, particularly because of their high upfront installation costs.
The Biomass Thermal Utilization Act (BTU Act) corrects this oversight, dating back to the 2005 Energy Policy Act.
The BTU Act:
- Revises Section 25D of the tax code to provide a 30% residential tax credit for biomass heating systems with a higher heating value (HHV) of 75% or greater.
- Revises Section 48 of the tax code to provide a two-tiered tax credit for commercial and industrial biomass heating systems:
- 15% tax credit for systems with an HHV between 65-80%
- 30% tax credit for systems with an HHV greater than 80%
The BTU Act will help overcome the high capital costs of installing a biomass heating system. This will help expand the market for biomass heating and put it on par with other renewable energies.
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