To amend the Internal Revenue Code of 1986 to encourage investment in electric transmission technologies that improve the efficiency of power delivery.

Summary: Financing Advanced and Superconducting Transmission Act of 2009 - Amends the Internal Revenue Code to allow: (1) accelerated depreciation of qualified advanced electric transmission property placed in service before January 1, 2017; and (2) an energy tax credit for investment in qualified high efficiency transmission property or qualified advanced electric transmission property.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financing Advanced and 
Superconducting Transmission Act of 2009''.

SEC. 2. 5-YEAR DEPRECIATION FOR ADVANCED ELECTRIC TRANSMISSION 
              PROPERTY.

    (a) In General.--Subparagraph (B) of section 168(e)(3) of the 
Internal Revenue Code of 1986 (defining 5-year property) is amended by 
striking ``and'' at the end of clause (vi), by striking the period at 
the end of clause (vii) and inserting ``, and'', and by inserting after 
clause (vii) the following new clause:
                            ``(viii) is qualified advanced electric 
                        transmission property (as described in section 
                        48(c)(6)) which is placed in service before 
                        January 1, 2017''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 3. INVESTMENT TAX CREDIT FOR HIGH EFFICIENCY TRANSMISSION PROPERTY 
              AND ADVANCED ELECTRIC TRANSMISSION PROPERTY.

    (a) In General.--Subparagraph (A) of section 48(a)(3) of the 
Internal Revenue Code of 1986 (defining energy property) is amended by 
striking ``or'' at the end of clause (vi) and by inserting after clause 
(vii) the following new clauses:
                            ``(viii) qualified high efficiency 
                        transmission property, or
                            ``(ix) qualified advanced electric 
                        transmission property,''.
    (b) 30 Percent Credit.--Clause (i) of section 48(a)(2)(A) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of subclause (III) and by inserting after subclause (IV) the following:
                                    ``(V) qualified advanced electric 
                                transmission property, and''.
    (c) Definitions.--Subsection (c) of section 48 of such Code is 
amended by adding at the end the following new paragraphs:
            ``(5) Qualified high efficiency transmission property.--
                    ``(A) In general.--The term `qualified high 
                efficiency transmission property' means any high 
                voltage overhead electric transmission line, related 
                substation, or other integrated facility that--
                            ``(i) utilizes advanced conductor core 
                        technology that has been determined by the 
                        Secretary of Energy as--
                                    ``(I) reasonably likely to become 
                                commercially viable within ten (10) 
                                years of the date of enactment of the 
                                Financing Advanced and Superconducting 
                                Transmission Act of 2009,
                                    ``(II) is suitable for use on 
                                transmission lines up to 765kV, and
                                    ``(III) exhibits power losses at 
                                least 30 percent lower than that of 
                                transmission lines using conventional 
                                `ACSR' conductors,
                            ``(ii) has been determined by an 
                        appropriate energy regulatory body, upon 
                        application, to be in the public interest and 
                        thereby eligible for inclusion in regulated 
                        rates, and
                            ``(iii) can be located safely and 
                        economically in a right of way not to exceed 
                        that used by conventional `ACSR' conductors.
                    ``(B) Termination.--The term `qualified high 
                efficiency transmission property' shall not include any 
                property placed in service after December 31, 2016.
            ``(6) Qualified advanced electric transmission property.--
                    ``(A) In general.--The term `qualified advanced 
                electric transmission property' means any high voltage 
                electric transmission cable, related substation, 
                converter station, or other integrated facility that--
                            ``(i) utilizes advanced ultra low 
                        resistance superconductive material or other 
                        advanced technology that has been determined by 
                        the Secretary of Energy as--
                                    ``(I) reasonably likely to become 
                                commercially viable within 10 years 
                                after the date of enactment of the 
                                Financing Advanced and Superconducting 
                                Transmission Act of 2009,
                                    ``(II) capable of reliably 
                                transmitting at least 5 gigawatts of 
                                high-voltage electric energy for 
                                distances greater than 300 miles with 
                                energy losses not exceeding 3 percent 
                                of the total power transported, and
                                    ``(III) not creating an 
                                electromagnetic field,
                            ``(ii) has been determined by an 
                        appropriate energy regulatory body, upon 
                        application, to be in the public interest and 
                        thereby eligible for inclusion in regulated 
                        rates, and
                            ``(iii) can be located safely and 
                        economically in a permanent underground right 
                        of way not to exceed 25 feet in width.
                    ``(B) Energy percentage.--In the case of any 
                qualified advanced electric transmission property 
                placed in service before January 1, 2015, with a length 
                of not less than 150 miles, subsection (a)(2)(A)(i) 
                shall be applied by substituting `50 percent' for `30 
                percent'.
                    ``(C) Termination.--The term `qualified advanced 
                electric transmission property' shall not include any 
                property placed in service after December 31, 2016.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, in 
taxable years ending after such date, under rules similar to the rules 
of section 48(m) of the Internal Revenue Code of 1986 (as in effect on 
the day before the date of the enactment of the Revenue Reconciliation 
Act of 1990).