EXTENSION OF RESIDENTIAL ENERGY-EFFICIENT PROPERTY CREDIT AND INCLUSION OF BIOMASS FUEL PROPERTY EXPENDITURES.

SEC. 148. EXTENSION OF RESIDENTIAL ENERGY-EFFICIENT PROPERTY CREDIT AND INCLUSION OF BIOMASS FUEL PROPERTY EXPENDITURES. (a) Extension.— (1) In general.—Section 25D(h) is amended by striking “December 31, 2021” and inserting “December 31, 2023”. (2) Phasedown.—Section 25D(g) is amended— (A) by striking “January 1, 2021” in paragraph (2) and inserting “January 1, 2023”, and (B) by striking “after December 31, 2020, and before January 1, 2022” in paragraph (3) and inserting “after December 31, 2022, and before January 1, 2024”. (b) Qualified Biomass Fuel Property Expenditures.— (1) In general.—Section 25D(a) is amended by striking “and” at the end of paragraph (4), by inserting “and” at the end of paragraph (5), and by inserting after paragraph (5) the following new paragraph: “(6) the qualified biomass fuel property expenditures, and” . (2) Qualified biomass fuel property expenditures defined.—Section 25D(d) is amended by adding at the end the following new paragraph: “(6) Qualified biomass fuel property expenditure.— “(A) In general.—The term ‘qualified biomass fuel property expenditure’ means an expenditure for property— “(i) which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and “(ii) which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel). “(B) Biomass fuel.—For purposes of this section, the term ‘biomass fuel’ means any plant-derived fuel available on a renewable or recurring basis.” . (3) Denial of double benefit for biomass stoves.— (A) In general.—Section 25C(d)(3) is amended by adding “and” at the end of subparagraph (C), by striking “, and” at the end of subparagraph (D) and inserting a period, and by striking subparagraph (E). (B) [26 U.S.C. 35C] Conforming amendment.—Section 25C(d) is amended by striking paragraph (6). (c) Effective Date.— (1) [26 U.S.C. 25D note] Extension.—The amendments made by subsection (a) shall apply to property placed in service after December 31, 2020. (2) [26 U.S.C. 25C note] Qualified biomass fuel property expenditures.—The amendments made by subsection (b) shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2020.