Learn about Waste Heat to Power Get involved with the Heat is Power Association

HiP + 23 Companies and Organizations Urge IRS to include WHP in the ITC

Feb 16, 2016

Twenty-three companies and organizations joined the Heat is Power Association in written comments to the IRS urging the agency to clarify that the definition of combined heat and power (CHP) system property in Section 48 of the U.S. tax code includes both topping cycle and bottoming cycle cogeneration, the latter also known as waste heat to power (WHP). As presently written, the CHP definition limits the 10 percent ITC to topping cycle cogeneration projects only. Congress, the U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA) all formally recognize bottoming cycle cogeneration in law, regulation and published reports, and commonly refer to it as WHP. Excluding bottoming cycle cogeneration from the definition of eligible technologies in Section 48 removes an important financial tool to support deployment of this clean energy technology, making it challenging for these fuel-free, emission-free systems to compete in the marketplace. The full comments including our recommended solution can be found here.