Biomass Facility Construction Act

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:

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.

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.

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.

Section 45(b)(4) of such Code is amended by adding at the end the following new subparagraph:

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.

The amendments made by this section shall apply to facilities the construction of which begins after the date of the enactment of this Act.