SMACNA is pleased that a bipartisan group of House and Senate legislators introduced the Power Efficiency and Resiliency Act (POWER Act) in June. The bills (S. 1516/H. 2657) would ensure that industrial energy efficiency technologies—combined heat and power (CHP) and waste heat to power (WHP)—are treated in a manner that is on par with other renewables covered by the investment tax credit.
This bipartisan legislation would:
- Provide a 30 percent investment tax credit for industrial energy efficiency systems equal to other technologies such as solar, fuel cells, and small wind turbines.
- Include waste heat to power as a qualifying technology that is eligible for the credit.
- Remove size and capacity restrictions, making combined heat and power installations of any size eligible for the credit.
- Extend the credit, which is scheduled to expire in December 2016, to December 2018.
SMACNA has long supported the investment tax credit (ITC) and other tax incentives for the construction of energy efficient power plants, combined heat and power facilities (CHP) and waste heat recovery (WHR) projects.
The proposed legislative change would be particularly helpful for countless thousands of contractors on existing and future large CHP/WHP projects, including those systems found on many large commercial, public, and industrial building sites.
The POWER Act is welcome news to industry, workers, environmentalists, and first responders.
SMACNA and more than 110 businesses, trade associations, nonprofit organizations, and research institutions have endorsed the POWER Act.