Bill · S. 3531· Senate(119-S-3531)
A bill 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 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Marsha Blackburn
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill amends the Internal Revenue Code of 1986 to create a tax credit for qualified combined heat and power system property. The baseline tax credit is set at 10 percent of the basis for eligible property placed in service during the taxable year. To qualify, systems must meet specific energy efficiency percentages and operational standards starting on or after January 1, 2025. The bill also provides bonus credit amounts for projects using domestic content or located within energy communities. Additionally, the legislation outlines capacity limitations for eligible systems and details rules for progress expenditures and coordination with other credits.
Yes· 3 of 12
Does this put more money into wind, solar and other renewable power?+5
Provides specific tax credits and bonuses for qualifying energy projects and energy communities.
Does this cut the pollution that drives climate change?+4
Promotes high-efficiency combined heat and power systems that use energy more efficiently.
Would business owners be better off under this?+4
Provides tax credits for businesses investing in qualifying combined heat and power systems.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Domestic Content Bonus Credit: Section 1(a)(1) adds section 48F(a)(5), which provides a 10 percentage point increase in the tax credit for energy projects that satisfy specific domestic content requirements. This could benefit American manufacturing workers and domestic industries by encouraging the use of locally produced materials.
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Energy Communities Bonus Credit: Section 1(a)(1) adds section 48F(a)(6), which increases the credit rate by 10 percentage points for energy projects placed in service within an energy community. This provision aims to drive investment and economic activity directly into communities that have traditionally relied on energy industries.
Potential Negative Impacts for People
- System Capacity Limitations: Section 1(a)(1) adds section 48F(c)(1)(B)(iii), which completely excludes any property with an electrical capacity in excess of 50 megawatts or a mechanical energy capacity in excess of 67,000 horsepower from being considered qualified combined heat and power system property. This restriction might burden or exclude larger-scale energy projects from receiving the tax credit, potentially limiting broader industrial participation.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Environment Energy And Infrastructure
- Increases Renewable Energy Investment+5Reduces Carbon Emissions+4Improves Rural Development+3Improves Environmental Protections+2
- Demographic And Interest Groups
- Good For Business Owners+4Good For Farmers+3Good For Rural Residents+3Good For Union Workers+3
- Economy And Finance
- Increases Job Creation+4Improves Economic Growth+3Reduces Small Business Taxes+3Improves Small Business Support+2
- 12/17/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
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.