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Tax Credit for Highly Efficient Combined Heat and Power Systems.

This law establishes a new tax credit for businesses and investors who install highly efficient combined heat and power (CHP) systems. The goal is to incentivize investments in energy-efficient technology, potentially leading to more stable energy prices and reduced fuel consumption nationwide. Investors can claim a 10% credit on the cost of qualified systems, with potential bonuses increasing the credit up to 20% for using domestic components or locating in specific energy zones.
Key points
A new 10% tax credit is available for the cost of installing qualified combined heat and power (CHP) systems.
The credit can be increased to 20% if the project uses domestically produced components or is located in designated "energy communities."
The incentive applies to systems whose construction begins after December 31, 2024, and which meet strict energy efficiency standards (over 60% efficiency).
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Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_6824
Sponsor: Rep. Van Duyne, Beth [R-TX-24]
Process start date: 2025-12-17