; (2) by striking For purposes of and inserting the following: (1) In general Except as provided under paragraph (2), for purposes of ; and (3) by adding at the end the following: (2) Applicable percentage for qualified biomass fuel property expenditures In the case of any qualified biomass fuel property expenditures made by the taxpayer during the taxable year, the applicable percentage shall be 30 percent. . (d) Termination Subsection (h) of section 25D of such Code is amended to read as follows: (h) Termination (1) In general Except as provided under paragraph (2), the credit allowed under this section shall not apply to property placed in service after December 31, 2021. (2) Application to qualified biomass fuel property In the case of property described in subsection (d)(6), the credit allowed under this section shall not apply to property placed in service after December 31, 2023. . (e) Effective date The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2018. 3. Investment tax credit for biomass heating property (a) In general Section 48(a)(3)(A) of the Internal Revenue Code of 1986 is amended— (1) by striking or at the end of clause (vi); (2) by adding or at the end of clause (vii); and (3) and by inserting after clause (vii) the following new clause: (viii) open-loop biomass (within the meaning of section 45(c)(3)) heating property, including boilers or furnaces that operate at thermal output efficiencies of not less than 65 percent (measured by the higher heating value of the fuel) and that provide thermal energy in the form of heat, hot water, or steam for space heating, air conditioning, domestic hot water, or industrial process heat, . (b) 30 percent and 15 percent credits (1) Energy percentage (A) In general Section 48(a)(2)(A) of such Code is amended— (i) by striking and at the end of clause (i)(IV); (ii) by redesignating clause (ii) as clause (iii)