S. 1142 - Energy Storage Tax Incentive and Deployment Act of 2019

116TH CONGRESS
1ST SESSION

S. 1142

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

IN THE SENATE OF THE UNITED STATES

APRIL 11, 2019

Mr. HEINRICH (for himself, Mr. GARDNER, Mr. SCHATZ,
Mr. BENNET, Mr. WHITEHOUSE, Ms. HIRONO, Mr. MERKLEY,
Ms. SMITH, Mr. REED, Mr. BOOKER, Mrs. FEINSTEIN, and
Ms. HASSAN) 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.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Energy Storage Tax Incentive and Deployment Act of 2019”.

SEC. 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, 2018.

SEC. 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 inserting “and” after the comma at the end of paragraph (5), and by adding at the end the following new paragraph:

“(6) the qualified battery storage technology expenditures,”.

(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) EFFECTIVE DATE. — The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2018.