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This bill amends the Internal Revenue Code to establish a new 10 percent investment tax credit for qualified combined heat and power (CHP) system property placed in service after December 31, 2024. The credit applies to systems that simultaneously generate electrical or mechanical power and thermal energy, with minimum efficiency and output requirements. The bill includes bonus provisions that increase the credit by 10 percentage points for systems using domestic content or located in energy communities, and applies capacity limitations capping eligible systems at 50 megawatts or equivalent mechanical capacity.
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