This bill proposes to amend the Internal Revenue Code of 1986 by establishing a new tax credit for qualified combined heat and power (CHP) system property . Its primary goal is to incentivize the adoption of efficient energy generation systems that simultaneously produce electricity and useful thermal energy, such as heating or cooling. The core provision introduces Section 48F, providing a base credit equal to 10 percent of the basis of eligible CHP system property placed in service. To qualify, systems must meet specific criteria, including using a single energy source for combined power and thermal generation, achieving at least 20% thermal and 20% electrical/mechanical energy output, and demonstrating an energy efficiency percentage exceeding 60%. The legislation includes provisions for bonus credit amounts , adding 10 percentage points for projects that satisfy domestic content requirements and another 10 percentage points for projects located within designated "energy communities." The bill defines "combined heat and power system property" as a system with construction beginning on or after January 1, 2025, and sets limitations on system capacity, excluding systems over 50 megawatts or equivalent mechanical capacity from receiving the credit. The amendments made by this bill will apply to property whose construction begins after December 31, 2024.