Expanding Industrial Energy and Water Efficiency Incentives Act of 2012 - Amends the Internal Revenue Code to: (1) increase megawatt and horsepower capacity limitations for the combined heat and power system property energy tax credit; (2) allow new tax credits to improve advanced motor system energy efficiency, to replace chlorofluorocarbon (CFC) refrigerant chillers, and for investment in any qualifying efficient industrial process water use project; and (3) allow an energy tax credit for investment in biomass heating property.