On February 26, 2025, the Combined Heat and Power (CHP) Alliance met with over a dozen Members of Congress and their staff to advocate for an extension of the Section 48 Investment Tax Credit (ITC).
The ITC incentivized the deployment of CHP systems but expired at the end of 2024. The Section 48 ITC was replaced by the Section 48E technology-neutral ITC. The U.S. Treasury Department released the final guidance for the technology-neutral credit in January 2025, and CHP systems were not included as eligible technology.
Given the final guidance for Section 48E, the CHP Alliance is focusing its advocacy efforts on securing an extension of the ITC in its original form to ensure that CHP systems continue to be incentivized and deployed. CHP systems offer a reliable alternative to grid electricity at a time of rapidly rising electricity demand, while simultaneously reducing emissions and offering operational savings to businesses.
The CHP Alliance thanks the following members for participating:
- Capstone Green Energy,
- CarbonQuest,
- Caterpillar,
- Clarke Energy,
- Colusa Indian Energy,
- Cordia Energy,
- Enginuity Power Systems,
- Firm Power Solutions,
- Kanin Energy.
- Martin Energy Group,
- N-Line Energy,
- Northeast-Western Energy Systems,
- Renew Energy Partners, and
- Washington Gas.