A bill to amend the Internal Revenue Code of 1986 to establish a tax credit for qualified combined heat and power system property, and for other purposes.

On December 17, 2025, Senator Marsha Blackburn (R-TN) introduced S.3531, a bill to add a 10% non-refundable business tax credit under Section 48F of the Internal Revenue Code for qualified combined heat and power (CHP) system property. The bill was read twice and referred to the Senate Committee on Finance, where it remains without further committee action, hearings, or markup as of April 30, 2026. An identical House companion bill, H.R. 6824, was similarly referred to the Ways and Means Committee. Both are at the earliest legislative stage.

The bill establishes a tax credit, which reduces a taxpayer's liability dollar-for-dollar (non-refundable, so it cannot exceed tax owed), not a direct appropriation of funds. The IRS would administer the credit, reducing federal revenue rather than sending grants. The Congressional Budget Office would score the revenue loss, but no explicit funding amount is authorized or appropriated in the bill text. This is a pure tax incentive mechanism.

The structural beneficiaries are manufacturers of equipment used in CHP systems — primarily gas turbines, reciprocating engines, heat recovery steam generators, and controls. GE Vernova (GEV) and Caterpillar (CAT) are the two largest US-headquartered public companies with significant CHP equipment exposure. However, the bill must pass both chambers, survive a potential reconciliation process, and be signed into law. With zero committee action in over four months, passage probability is low for the current Congress. Alternative CHP-related exposure also exists through Siemens Energy (SIEGY, not US-listed) and smaller pure-play firms like Capstone Green Energy (CGRN) but with limited public float.

Real market data shows GE at $289.20 (down 4.67% over 7 days) and CAT at $817.87 (up 1.11%). These movements are attributable to broader market trends and company-specific factors — not legislative noise from an idle Senate bill. For retail investors, this is a watch-and-wait situation with no actionable near-term catalyst.