The Biomass Thermal Utilization Act
- May 4, 2022 – BTEC urges members to ask Senators to include the BTU Act in any tax bill that results from the discussions between Senator Manchin and the White House
- May 14, 2021 – Kuster, Kelly, Welch, and Pingree Reintroduce Bipartisan Legislation to Incentivize Efficient, Renewable Energy >>
- April 20, 2021 – King, Collins, Renew Push to Support Renewable Energy, Maine’s Forest Products Industry >>
What is the BTU Act?
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?
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
|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?
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 (firstname.lastname@example.org) or 202-596-3974 x360
What is Biomass Thermal Energy?
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?
- 509 Fabrication Inc
- A.M. Logging, LLC
- Advanced Cyclone Systems
- AFS Energy Systems
- Algae Consultant
- Allegheny Hardwood Utilization Group
- Alliance for Green Heat
- American Forest Foundation
- American Loggers Council
- American Wood Fiber
- Appalachian Wood Pellets Inc,
- APEX – Area Partnership for Economic Expansion
- Aries Clean Technologies
- Aroostook Partnership
- Baling Twine Farm
- Biomass Briquette Systems
- Biomass Energy Resource Center
- Biomass Engineering and Equipment
- Biomass Magazine
- Biomass Power Association
- Biomass System Supply
- Biomass Thermal Energy Council
- Boreal Heat
- C&D Recycling Assoication
- Central Boiler
- Central New York Weatherization Services
- Clean Energy Economy MN
- Clean Energy NH
- Connecticut Mulch Distributors, Inc
- Curran Renewable Energy, LLC
- Cutting Edge Energy Systems
- Empire State Forest Products Association
- Energy Initiatives, Inc.
- Etkind Consulting LLC
- Fiber By-Products, Corp.
- Field Controls, LLC
- Firespeaking, LLC
- Forest Energy Corporation
- Forest Resources Association
- friends of the sun
- Froling Energy
- George F Doughty P and H Inc.
- Gogebic Community College
- Great Lakes Timber Professionals Association
- Hancock Lumber
- Hardwood Federation
- Hearth, Patio & Barbecue Association
- Heating the Midwest
- Home Energy Raters LLC
- Iberia Energetica
- Idaho Forest Owners Association
- IHB Technologies, Inc
- Innovative Natural Resource Solutions
- Integrated Energy Systems, PLLC
- Kerr Wood Leidal Associates
- Lamppa Manufacturing
- Lignetics, Inc.
- Maine Energy Systems
- Maine Pellet Fuels Association
- Maine Wood Pellet Co.
- Maryland Forests Association
- Masonry Heater Association of North America
- Massachusetts Clean Energy Center
- Massachusetts Forest Alliance
- Messersmith Manufacturing
- Metzler Forest Products LLC
- New England Forestry Foundation
- New Hampshire Timberland Owners Association
- New Horizon Inc
- Northeast Pellets, LLC
- Northern Forest Center
- Orion Advocates
- Pellet Fuels Institute
- Posko Engineering, LLC
- Professional Logging Contractors of Maine
- Prosody Consulting, LLC
- Q-Team Tree Service
- Renewable Energy Vermont
- Riverdale Farm and Forest
- Sandri Energy LLC
- Society for the Protection of NH Forests
- Solartechnic Contractors
- Solid Rock Masonry Heat
- SunWood Biomass
- Sustainable Heating Outreach & Education, Inc.
- Sustainable Northwest
- T&D Wood Energy
- Tarm Biomass
- Technology Transition Corporation
- Travis Inductries
- Triple Green Products
- TTC Energy, LLC
- Vermont Energy Investment Corporation
- Virginia Loggers Association
- Warren & Baerg Mfg., Inc.
- Wilson Engineering Services
- Wisewood Energy
- Wood Energy Recyclers
- Wood Management Systems, Inc.
- WoodMaster Inc.