S.3531

Establishes a tax credit for qualified combined heat and power system property under the Internal Revenue Code.

The bill amends the Internal Revenue Code to create a tax credit for qualified combined heat and power system property. This credit applies to systems that use the same energy source for generating electrical power, mechanical shaft power, or both, along with steam or other thermal energy. To qualify, the system must produce at least 20% of its total useful energy in the form of thermal energy and at least 20% in the form of electrical or mechanical power. The system's energy efficiency percentage must exceed 60%, and construction must begin on or after January 1, 2025.