H.R. 9746: Biomass Facility Construction Act

This bill would change federal tax rules for certain biomass energy facilities, such as some facilities that use organic material like wood waste or other biomass to produce energy.

What the bill does

• It restores access to a tax investment credit for certain new biomass facilities.
• It also restores access to a tax production credit for certain new biomass facilities.
• These credits would apply only to facilities whose construction begins after the bill becomes law.

Investment credit changes

The bill says that some property used in a qualified biomass facility would count as “energy property” for purposes of the federal investment tax credit. For that property, the credit rate would be set at 30%.

This would apply to facilities that fit into existing biomass categories in the tax code and begin construction after enactment.

Production credit changes

The bill also updates the rules for the federal production tax credit so that certain biomass facilities can again qualify even if construction starts after the bill is enacted. It removes timing limits that otherwise would have blocked some newer facilities from getting the credit.

Effective date

The changes would apply only to facilities whose construction begins after the bill is enacted.

Relevant Companies

• BE — Bloom Energy may be indirectly affected if biomass project development and related clean-energy infrastructure investment increases, though it is not a direct biomass-facility operator.
• WK — Worthington Industries may have indirect exposure through industrial products used in energy infrastructure, but it is not directly targeted by the bill.
• ICL — ICL Group has broader involvement in industrial and materials markets that can overlap with energy projects, though the bill does not specifically name it.
• NEE — NextEra Energy could be indirectly affected if the bill increases investment in biomass generation projects, but the bill is not aimed specifically at it.