Details of Public Law 116-260, section 148 , Extension of Residential Energy-Efficient Property Credit and Inclusion of Biomass Fuel Property Expenditures

The provision extends, for property placed in service on or before 12/31/2023 a personal income tax credit for the purchase of qualified solar electric property and qualified solar water heating property that is used exclusively for purposes other than heating swimming pools and hot tubs. The credit rate is 26 percent for property placed in service after 12/31/2019 and before 1/1/2023, and 22 percent for property placed in service in after 12/31/2022 and before 1/1/2024.

The provision also adds qualified biomass fuel property expenditures to the list of expenditures qualifying for the credit. A qualified biomass fuel property expenditure is an expenditure for property that uses the burning of bio-mass fuel to heat a residence located in the US, or to heat water. The thermal efficiency rating must be at least 75 percent.