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The Biomass Thermal Utilization Act

The Biomass Thermal Utilization Act

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

BTEC Sustaining Members

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