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New Tax Credit for Efficient Combined Heat and Power Systems

This bill establishes a new tax credit for businesses and property owners who invest in combined heat and power (CHP) systems. The aim is to encourage the adoption of more energy-efficient technologies, potentially lowering operational costs and supporting environmental goals. Citizens may indirectly benefit from reduced business energy costs and improved environmental quality.
Key points
A new 10% tax credit for the cost of qualified combined heat and power (CHP) system property.
An additional 10% bonus credit for systems made with domestic content and for projects located in designated "energy communities."
Applies to systems that simultaneously generate electricity/mechanical power and useful heat, meeting specific efficiency standards.
The changes apply to property construction beginning after December 31, 2024.
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Status: Introduced
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Additional Information
Print number: 119_S_3531
Sponsor: Sen. Blackburn, Marsha [R-TN]
Process start date: 2025-12-17