America's First Fuels Act
Sponsored By: Senator King, Angus S., Jr. [I-ME]
Introduced
Summary
Expands tax incentives for biomass energy and creates a 30% investment credit for qualifying biomass heating equipment. If enacted, the bill would raise homeowner credits for biomass upgrades and add a new tax credit aimed at boilers and furnaces that run on open-loop biomass.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
30% credit for biomass heaters
If enacted, the bill would create a new investment tax credit equal to 30% of the cost of qualifying open-loop biomass heating property placed in service in taxable years ending after December 31, 2025. Qualifying systems must use open-loop biomass to make heat, hot water, hot air, or steam for space heating, AC, domestic hot water, or industrial process heat. Boilers and furnaces qualify only if they meet four rules: at least 75% thermal efficiency (lower heating value), installed indoors, smaller than 50 MMBtu, and equipped with an electrostatic precipitator or similar emissions control. The proposal also includes special rules for property financed with tax-exempt bonds and progress-expenditure rules.
New caps on biomass home credits
If enacted, the bill would limit the energy efficient home improvement credit for biomass items placed in service after December 31, 2025. You would be limited to $2,000 total for certain biomass stoves and boilers (the items in one listed category). You would be limited to $10,000 total for other biomass home-improvement items in the other listed category. These are aggregate dollar caps on amounts paid or incurred for the specified property.
Sponsors & CoSponsors
Sponsor
King, Angus S., Jr. [I-ME]
ME • I
Cosponsors
Sen. Collins, Susan M. [R-ME]
ME • R
Sponsored 4/8/2025
Sen. Shaheen, Jeanne [D-NH]
NH • D
Sponsored 4/8/2025
Sen. Hassan, Margaret Wood [D-NH]
NH • D
Sponsored 4/9/2025
Sen. Murkowski, Lisa [R-AK]
AK • R
Sponsored 5/5/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov