WASTE ENERGY RECOVERY PROPERTY ELIGIBLE FOR ENERGY CREDIT.

SEC. 203. WASTE ENERGY RECOVERY PROPERTY ELIGIBLE FOR ENERGY CREDIT. (a) [26 U.S.C. 48] In General.—Section 48(a)(3)(A) is amended by striking “or” at the end of clause (vi), by inserting “or” at the end of clause (vii), and by adding at the end the following new clause: “(viii) waste energy recovery property,” . (b) Application of 30 Percent Credit.—Section 48(a)(2)(A)(i) is amended by striking “and” at the end of subclause (III) and by adding at the end the following new subclause: “(V) waste energy recovery property, and” . (c) Application of Phaseout.—Section 48(a)(7) is amended— (1) by inserting “waste energy recovery property,” after “qualified small wind property,”, and (2) by striking “fiber-optic solar, qualified fuel cell, and qualified small wind” in the heading thereof and inserting “certain other”. (d) Definition.—Section 48(c) is amended by adding at the end the following new paragraphs: “(5) Waste energy recovery property.— “(A) In general.—The term ‘waste energy recovery property’ means property that generates electricity solely from heat from buildings or equipment if the primary purpose of such building or equipment is not the generation of electricity. “(B) Capacity limitation.—The term ‘waste energy recovery property’ shall not include any property which has a capacity in excess of 50 megawatts. “(C) No double benefit.—Any waste energy recovery property (determined without regard to this subparagraph) which is part of a system which is a combined heat and power system property shall not be treated as waste energy recovery property for purposes of this section unless the taxpayer elects to not treat such system as a combined heat and power system property for purposes of this section. “(D) Termination.—The term ‘waste energy recovery property’ shall not include any property the construction of which does not begin before January 1, 2024.” . (e) [26 U.S.C. 48 note] Effective Date.—The amendments made by this section shall apply to periods after December 31, 2020, under rules similar to the rules of section 48(m) as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990.