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136 STAT. 1986 PUBLIC LAW 117–169—AUG. 16, 2022 ‘‘(2) COMBINED HEAT AND POWER SYSTEM PROPERTY.— ‘‘(A) IN GENERAL.—For purposes of subsection (a)— ‘‘(i) the kilowatt hours of electricity produced by a taxpayer at a qualified facility shall include any production in the form of useful thermal energy by any combined heat and power system property within such facility, and ‘‘(ii) the amount of greenhouse gases emitted into the atmosphere by such facility in the production of such useful thermal energy shall be included for pur- poses of determining the greenhouse gas emissions rate for such facility. ‘‘(B) COMBINED HEAT AND POWER SYSTEM PROPERTY.— For purposes of this paragraph, the term ‘combined heat and power system property’ has the same meaning given such term by section 48(c)(3) (without regard to subpara- graphs (A)(iv), (B), and (D) thereof). ‘‘(C) CONVERSION FROM BTU TO KWH.— ‘‘(i) IN GENERAL.—For purposes of subparagraph (A)(i), the amount of kilowatt hours of electricity pro- duced in the form of useful thermal energy shall be equal to the quotient of— ‘‘(I) the total useful thermal energy produced by the combined heat and power system property within the qualified facility, divided by ‘‘(II) the heat rate for such facility. ‘‘(ii) HEAT RATE.—For purposes of this subpara- graph, the term ‘heat rate’ means the amount of energy used by the qualified facility to generate 1 kilowatt hour of electricity, expressed as British thermal units per net kilowatt hour generated. ‘‘(3) PRODUCTION ATTRIBUTABLE TO THE TAXPAYER.—In the case of a qualified facility in which more than 1 person has an ownership interest, except to the extent provided in regula- tions prescribed by the Secretary, production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility. ‘‘(4) RELATED PERSONS.—Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corpora- tion shall be treated as selling electricity to an unrelated person if such electricity is sold to such a person by another member of such group. ‘‘(5) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS.— Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply. ‘‘(6) ALLOCATION OF CREDIT TO PATRONS OF AGRICULTURAL COOPERATIVE.— ‘‘(A) ELECTION TO ALLOCATE.— ‘‘(i) IN GENERAL.—In the case of an eligible coopera- tive organization, any portion of the credit determined under subsection (a) for the taxable year may, at the election of the organization, be apportioned among patrons of the organization on the basis of the amount Regulations. Applicability. Regulations. Definition. Definition. VerDate Sep 11 2014 15:35 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00170 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw