The benefits of the BTU Act are significant to communities and businesses that rely on often higher priced and imported fossil fuels:
✓ Keeps hard earned dollars circulating in rural communities by purchasing locally produced biomass fuels (according to EIA approximately 80 cents of every $1 spent on heating oil leaves the community)
✓ Allows the estimated 19 million Midwest, Northeast, and Western homes and businesses not connected to natural gas an affordable and renewable heating option
✓ Creates jobs from the biomass supply chain, increased disposable income, and wealth retention
✓ Net benefit to the Treasury (i.e. the taxpayer) because of dollars saved and taxes generated on new economic activity
As you may know, biomass thermal technologies for space heating, water heating, cooling, and process heat have never benefited from the investment tax credits in the federal tax code that other renewable energy technologies like wind, solar, geothermal, and biomass power have received for many years. The BTU Act specifically contains two major provisions that would correct this oversight and level the playing field:
+ Include residential high-efficiency biomass thermal property in Section 25D of the tax code, with a 30% credit for equipment with an efficiency rating of at least 75%;
+ Promote commercial and industrial biomass thermal investments through a tiered credit for 15% or 30% of the installed cost of biomass-fueled heating (or cooling) systems, with a 15% credit for systems 65%-80% efficient, and a 30% credit for systems 80% efficient and above;
+ Both credits would have no cap and would be available for biomass thermal systems placed in service after December 31, 2015 through 2020.
We look forward to getting your support of the BTU Act. We'll be in contact soon with information about the BTU Act's progress.