Bill · H.R. 6824· House(119-HR-6824)
To amend the Internal Revenue Code of 1986 to establish a tax credit for qualified combined heat and power system property, and for other purposes.
- Introduced
- 12/17/2025
- Last activity
- 12/17/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Beth Van Duyne
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill proposes to add a new section to the Internal Revenue Code to create a tax credit for qualified combined heat and power system property. The general credit is equal to 10 percent of the basis of the property placed in service. There are additional bonus credits available for projects using domestic content or those located in energy communities. The bill defines specific energy efficiency and capacity requirements that systems must meet to qualify. It also includes several conforming amendments to other sections of the tax code.
Yes· 3 of 16
Would business owners be better off under this?+5
Directly benefits business owners through tax credits on energy infrastructure investment.
Does this cut the pollution that drives climate change?+4
Combined heat and power systems generally increase energy efficiency and reduce overall fuel consumption.
Would farmers be better off under this?+3
Farmers utilizing biomass for energy may benefit from specific credit provisions.
The opposite
Does this raise the taxes companies pay?-2
The bill reduces overall corporate tax liability by introducing new tax credits for energy property.
Does this reduce what the federal government owes?-1
New tax credits reduce federal revenue, which can marginally increase the national debt.
Who it would affect, and how
Potential Positive Impacts for People
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General Tax Credit: Taxpayers can receive a credit equal to 10 percent of the basis of qualified combined heat and power system property, which reduces the cost of installing these systems. Section 48F(a)(1).
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Domestic Content Bonus: The credit percentage increases by an additional 10 percentage points for energy projects that meet domestic content requirements. Section 48F(a)(5).
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Energy Community Bonus: The credit percentage increases by another 10 percentage points for energy projects placed in service within an energy community. Section 48F(a)(6).
Potential Negative Impacts for People
-
Capacity Limitations: Systems with an electrical capacity exceeding 25 megawatts (or 33,500 horsepower) face a credit reduction based on the ratio of applicable capacity to actual capacity. Section 48F(c)(1)(B)(i).
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Maximum Size Cap: Any system with a capacity exceeding 50 megawatts (or 67,000 horsepower) is completely excluded from being considered combined heat and power system property. Section 48F(c)(1)(B)(iii).
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Efficiency Requirements: Systems must generally have an energy efficiency percentage exceeding 60 percent to qualify, which may exclude less efficient systems from receiving the credit. Section 48F(c)(1)(A)(iii).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+5Good For Farmers+3Good For Rural Residents+3Good For Billionaires+2Good For High Income Households+2Good For High Net Worth Individuals+2Good For Ultra High Net Worth Individuals+2Good For Union Workers+1
- Environment Energy And Infrastructure
- Reduces Carbon Emissions+4Improves Rural Development+3Improves Environmental Protections+2Increases Renewable Energy Investment+2
- Economy And Finance
- Improves Small Business Support+3Reduces Small Business Taxes+3Improves Economic Growth+2Increases Job Creation+2Increases Corporate Taxes-2Reduces National Debt-1
- 12/17/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
David KustoffRepublican · Tennessee