America's First Fuels Act

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America's First Fuels Act This bill increases the federal energy efficient home improvement tax credit amount allowed for installing a biomass stove or biomass boiler in a principal residence. The bill also establishes a new federal tax credit (as part of the general business tax credit) for investments in open-loop biomass heating property. Specifically, the bill increases to $10,000 the annual maximum amount of the energy efficient home improvement tax credit allowed for installing a biomass stove or biomass boiler in a principal residence. (Under current law, taxpayers may claim a tax credit of 30% of the cost, up to an annual maximum of $2,000, to install a biomass stove, a biomass boiler, or certain other energy-efficient property in a principal residence.) The bill also establishes a new business tax credit for 30% of the cost of any property which (1) uses open-loop biomass to produce thermal energy in the form of heat, hot water, hot air, or steam; and (2) is used for space heating, air conditioning, domestic hot water, or industrial process heat (or any combination of such uses). (Conditions apply.) However, the tax credit is reduced for open-loop biomass heating property financed with tax-exempt bonds. Finally, under the bill, businesses may elect to claim the tax credit for qualified open-loop biomass heating property progress expenses (expenses incurred in advance of placing such property in service) if the normal construction period for such property is two years or more and certain other conditions are met.