A bill to amend the Internal Revenue Code of 1986 to establish a tax credit for qualified combined heat and power system property, and for other purposes.

Sponsor: Marsha Blackburn (Republican-TN)

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Read twice and referred to the Committee on Finance.

Businesses would get a new tax credit for installing efficient combined heat and power systems.

Businesses and individuals would get a new 10 percent tax credit for installing special energy systems that produce both heat and power. This credit would help lower their tax bill, with extra bonuses available for using American-made parts or building projects in certain communities. This aims to encourage more efficient energy use.

What Would Change

Today, the tax code does not offer a specific tax credit for combined heat and power systems. This bill would create a new 10 percent tax credit for these systems, with potential 10 percentage point bonuses for using domestic content or for projects in energy communities. This would encourage more investment in these energy-efficient technologies starting with construction after December 31, 2024.

Key Provisions

Lets businesses and individuals claim a new 10 percent tax credit for the cost of installing qualified combined heat and power systems.
Offers an extra 10 percentage point tax credit if these systems use parts made in the U.S.
Provides another 10 percentage point tax credit if these systems are built in designated "energy communities."
Sets rules for what counts as a "qualified" system, requiring it to be at least 60 percent energy efficient and produce specific amounts of heat and power.
Limits the tax credit for very large systems and completely excludes extremely large ones from qualifying.
Clarifies that the Department of the Treasury, with the Department of Energy, would set the specific performance standards for these systems.

View on Congress.gov

S 3531 · 119th Congress · AI Summary by gemini-2.5-flash · 9/10

Lobbying Activity

5 filings mentioned this bill

Top Lobbying Clients

INTERNATIONAL PAPER

2 filings

CHAMBER OF COMMERCE OF THE U.S.A.

3 filings

Top Lobbying Firms

1.CHAMBER OF COMMERCE OF THE U.S.A.3 filings

2.INTERNATIONAL PAPER2 filings

Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.