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S. 1868: Energy Storage Tax Incentive and Deployment Act of 2017

The text of the bill below is as of Sep 26, 2017 (Introduced).


II

115th CONGRESS

1st Session

S. 1868

IN THE SENATE OF THE UNITED STATES

September 26, 2017

(for himself, Mr. Heller, Mr. Schatz, Mr. Franken, Mr. King, Ms. Hirono, Mrs. Feinstein, and Mr. Reed) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide tax credits for energy storage technologies, and for other purposes.

1.

Short title

This Act may be cited as the Energy Storage Tax Incentive and Deployment Act of 2017.

2.

Energy credit for energy storage technologies

(a)

In general

Subclause (II) of section 48(a)(2)(A)(i) of the Internal Revenue Code of 1986 is amended by striking paragraph (3)(A)(i) and inserting clause (i) or (viii) of paragraph (3)(A).

(b)

Energy storage technologies

Subparagraph (A) of section 48(a)(3) of the Internal Revenue Code of 1986 is amended by striking or at the end of clause (vi), by adding or at the end of clause (vii), and by adding at the end the following new clause:

(viii)

equipment which receives, stores, and delivers energy using batteries, compressed air, pumped hydropower, hydrogen storage (including hydrolysis), thermal energy storage, regenerative fuel cells, flywheels, capacitors, superconducting magnets, or other technologies identified by the Secretary in consultation with the Secretary of Energy, and which has a capacity of not less than 5 kilowatt hours,

.

(c)

Phaseout of credit

Paragraph (6) of section 48(a) of the Internal Revenue Code of 1986 is amended—

(1)

by striking energy in the heading and inserting and energy storage; and

(2)

by striking paragraph (3)(A)(i) both places it appears and inserting clause (i) or (viii) of paragraph (3)(A).

(d)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2016.

3.

Residential energy efficient property credit for battery storage technology

(a)

In general

Subsection (a) of section 25D of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting , and, and by adding at the end the following new paragraph:

(6)

the applicable percentage of the qualified battery storage technology expenditures made by the taxpayer during such year.

.

(b)

Qualified battery storage technology expenditure

Subsection (d) of section 25D of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(6)

Qualified battery storage technology expenditure

The term qualified battery storage technology expenditure means an expenditure for battery storage technology which—

(A)

is installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and

(B)

has a capacity of not less than 3 kilowatt hours.

.

(c)

Applicable percentage

Subsection (g) of section 25D of the Internal Revenue Code of 1986 is amended by striking (1) and (2) and inserting (1), (2), and (6).

(d)

Effective date

The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2016.