Biomass Facility Construction Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9746 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9746

 To amend the Internal Revenue Code of 1986 to provide investment and
    production credits for open- and closed-loop biomass facilities.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 16, 2026

   Mr. Kiley of California introduced the following bill; which was
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 To amend the Internal Revenue Code of 1986 to provide investment and
    production credits for open- and closed-loop biomass facilities.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Biomass Facility Construction Act''.

SEC. 2. REINSTATEMENT OF INVESTMENT AND PRODUCTION CREDITS FOR OPEN-
              AND CLOSED-LOOP BIOMASS FACILITIES.

    (a) Investment Credit.--Section 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 general.--In 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 facility.--For 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 facilities.--Section 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 limitations.--Section 45(b)(4)
        of such Code is amended by adding at the end the following new
        subparagraph:
                    ``(C) Termination.--Subparagraphs (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 Date.--The amendments made by this section shall
apply to facilities the construction of which begins after the date of
the enactment of this Act.
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