Biomass Facility Construction Act

119 HR 9746 IH: Biomass Facility Construction Act
U.S. House of Representatives
2026-07-16
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I119th CONGRESS2d SessionH. R. 9746IN THE HOUSE OF REPRESENTATIVESJuly 16, 2026Mr. Kiley of California introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to provide investment and production credits for open- and closed-loop biomass facilities. 
1.Short titleThis Act may be cited as the Biomass Facility Construction Act.  2.Reinstatement of investment and production credits for open- and closed-loop biomass facilities (a)Investment creditSection 48(a) of the Internal Revenue Code of 1986 is amended— 
(1)by redesignating paragraph (16) as paragraph (17), and (2)by inserting after paragraph (15) the following new paragraph: 
 
(16)Application of credit to certain biomass facilities 
(A)In generalIn the case of any qualified property (as defined in paragraph (5)(D)) which is part of a specified biomass facility— (i)such property shall be treated as energy property for purposes of this section, and 
(ii)the energy percentage with respect to such property is 30 percent. (B)Specified biomass facilityFor purposes of this paragraph, the term specified biomass facility means any facility— 
(i)described in paragraph (2) or (3) of section 45(d), and (ii)the construction of which begins after the date of the enactment of the Biomass Facility Construction Act.. 
(b)Production credit 
(1)Application to new biomass facilitiesSection 45(d) of the Internal Revenue Code of 1986 is amended— (A)in paragraphs (2) and (3), by inserting or after the date of the enactment of the Biomass Facility Construction Act, after January 1, 2025, each place it appears, and 
(B)in paragraph (3)(A)(ii), by inserting , or after the date of the enactment of the Biomass Facility Construction Act after January 1, 2025. (2)Termination of certain limitationsSection 45(b)(4) of such Code is amended by adding at the end the following new subparagraph: 
 
(C)TerminationSubparagraphs (A) and (B) shall not apply to any facility described in paragraph (2) or (3) of subsection (d) the construction of which begins after the date of the enactment of the Biomass Facility Construction Act.. (c)Effective dateThe amendments made by this section shall apply to facilities the construction of which begins after the date of the enactment of this Act.