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S 1998

Enacts the Unpredictable Nursing Home Inspection Act

2025 Regular Session Introduced by Rob Ortt

Establishes the Renewable Heating Solutions Development Fund and 30% tax credits to spur low-carbon renewable heating, funded by alternative compliance payments.

REFERRED TO HEALTH
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Bill Summary · S 1998

Summary — S.1998 (Senate No. 1998): "An Act advancing renewable heating solutions for the Commonwealth"

Note on source material: the bill text provided is Massachusetts Senate Docket No. 2110 / Senate No. 1998 (filed 1/17/2025) and is authored/presented by State Senator Paul R. Feeney. Some metadata in your submission (title, sponsors, related federal bill numbers, and procedural entries) appear inconsistent with the bill text; where possible this summary relies on the statutory language contained in the bill.

Purpose

To accelerate deployment of low‑carbon, renewable heating in Massachusetts by (1) creating a dedicated funding mechanism to support renewable heating fuels and thermal resources and (2) providing tax incentives to producers and purchasers of renewable heating equipment and infrastructure.

Key provisions

  • Amendments to existing law:
    • Adds chapter 164C to a cross‑reference in chapter 25 (sec. 3) to incorporate renewable heating statute references.
  • Renewable Heating Solutions Development Fund (Chapter 29, new section 2PPPPP):
    • Establishes a fund administered by the Department of Energy Resources (DOER).
    • Purpose: reduce carbon intensity of end‑use heating, expand supply of renewable thermal resources, and procure qualified renewable heating fuels and useful thermal energy (including environmental attributes) for compliance purposes under chapter 164C.
    • Funding: credits to the fund consist of alternative compliance payments made by obligated entities under chapter 164C; funds are non‑reverting and may be expended without further appropriation (but cannot create a year‑end deficit).
    • Uses (examples): procure qualified renewable heating fuels and environmental attributes (including multi‑year agreements); provide technical/financial assistance for interconnection, feasibility studies, installation; issue guarantees/assurances; establish escrows/reserves/insurance; cover administrative costs up to 10% of fund income.
    • DOER must adopt management plans/guidelines and may enter agreements with obligated entities; DOER shall pursue state/federal R&D opportunities for eligible resources.
  • Tax incentives (amendments to Chapters 62 and 63):
    • For pass‑through entities (partnerships/LLCs) engaged in producing qualified renewable heating fuels: refundable tax credit allowed and attributed pro rata to owners (administration by Commissioner in consultation with DOER).
    • Purchase/installation tax credit: taxpayers may claim a credit equal to 30% of qualified expenditures for approved renewable heating equipment (air‑source and ground‑source heat pumps, equipment using renewable hydrogen/renewable propane, etc.). Credit limited to 30% of net expenditure; refundable in excess.
    • Geothermal district heating infrastructure: a refundable tax credit equal to 30% of qualified expenditures for geothermal district heating infrastructure.
    • The bill also establishes (text truncated in provided materials) a corporate production tax credit for corporations producing qualified renewable heating fuels (to be inserted in chapter 63).
    • The Commissioner of Revenue will promulgate regulations in consultation with DOER to administer these credits.

Who is affected

  • Department of Energy Resources: administers the fund and issues guidelines/agreements.
  • Obligated entities under chapter 164C: may pay alternative compliance payments that fund the program or participate in DOER agreements.
  • Producers of qualified renewable heating fuels and renewable thermal project developers: eligible for production credits and program support.
  • Businesses and taxpayers installing qualified renewable heating equipment and geothermal district heating infrastructure: eligible for 30% refundable tax credits.
  • Utilities/regulated entities and customers indirectly, through procurement and compliance mechanisms.

Fiscal and procedural notes

  • Fund receives alternative compliance payments and may spend without further appropriation; administrative costs capped at 10% of fund income.
  • Introduced/filed as Senate No. 1998 (Senate Docket No. 2110) on 1/17/2025 by Sen. Paul R. Feeney. Legislative actions in the record include referrals to Health, Revenue, and Finance committees and hearings scheduled in 2025 (dates in source material vary). Regulatory implementation requires rulemaking by the Commissioner of Revenue in consultation with DOER.

Implementation mechanics to watch

  • DOER rulemaking and guidelines for fund procurement and project eligibility.
  • Definitions and requirements in chapter 164C (referenced throughout) — these determine what qualifies as renewable heating fuels, renewable hydrogen, geothermal district heating, and "obligated entities."
  • Final regulatory design for refundable credits and how refunds/overpayments are administered.

Compiled from official sources — confirm details with the bill’s official record.

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