BIOMASS HUB

Senators Jeanne Shaheen (D-NH), Lisa Murkowski (R-AK), Mike Crapo (R-ID), and Mark Begich (D-AR) introduced a bill at the end of March that would help businesses across the country meet their heating needs with renewable biomass.

According to the bill’s original sponsor, Shaheen:

We need to break our dependence on imported fossil fuels, and biomass, used effectively and sustainably, can help do that.  The American Renewable Biomass Heating Act will help put highly efficient biomass on a level playing field with other renewable resources and create the incentives businesses need to invest in clean energy.  There is no reason why the United States cannot and should not be a leader in clean energy technologies, including biomass.

The American Renewable Biomass Heating Act of 2010 (S. 3188), would establish a corporate tax credit equal to 30 percent of the installed cost of biomass-fueled heating (or cooling) systems for commercial or industrial applications.  The credit would have no maximum and would be available for biomass thermal systems placed in service on or before December 31, 2013.

Essentially, the legislation would allow federal tax credits to support the use of wood renewable biomass in “high-efficiency” heating systems in commercial and industrial buildings.  The Bill would also bring economic benefits to the timber industry and rural communities.

Federal tax credits have been available for biomass heating systems since the beginning of 2010, but there is a cap in place limiting credits to $1,500 per project.  The new legislation would allow tax credits for larger scale projects, supporting up to 30 percent of capital costs.

To qualify for the proposed tax credit, biomass boilers and furnaces would have to operate at a 75% efficiency level or greater while providing space heating, air conditioning, domestic hot water or industrial process heat.