I 

116TH CONGRESS 

1ST SESSION H. R. 5523 

To amend the Internal Revenue Code of 1986 to provide investment and 

production tax credits for emerging energy technologies, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 19, 2019 

Mr. REED (for himself, Mr. PANETTA, Mr. LAHOOD, Mr. SUOZZI, Mr. 

GOTTHEIMER, and Mr. SCHWEIKERT) introduced the following bill; which 

was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

investment and production tax credits for emerging energy technologies, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Energy Sector Innova5 tion Credit Act of 2019’’. 

6 SEC. 2. PURPOSES. 

7 The energy sector innovation credit is a technology8 neutral approach that would leverage new private invest9 ment in nascent clean technologies, help cutting-edge techVerDate Sep 11 2014 16:16 Dec 29, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5523.IH H5523

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1 nologies break into the market, and then naturally 

2 phasedown as each technology proves commercial viability. 

3 It could bring about the new technologies needed to quick4 ly and cheaply reduce global emissions. The innovation 

5 ESIC incentivizes is key to a strong energy supply plus 

6 will help address the climate and environmental challenge 

7 of this generation. The United States must lead on clean 

8 energy technology development. 

9 SEC. 3. INVESTMENT CREDIT FOR EMERGING ENERGY 

10 TECHNOLOGY. 

11 (a) IN GENERAL.—Subpart E of part IV of sub12 chapter A of chapter 1 of the Internal Revenue Code of 

13 1986 is amended by inserting after section 48C the fol14 lowing new section: 

15 ‘‘SEC. 48D. EMERGING ENERGY TECHNOLOGY CREDIT. 

16 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

17 emerging energy technology credit for any taxable year is 

18 an amount equal to 30 percent of the basis of any qualified 

19 emerging energy property placed in service by the taxpayer 

20 during such taxable year. 

21 ‘‘(b) CERTAIN QUALIFIED PROGRESS EXPENDITURE

22 RULES MADE APPLICABLE.—Rules similar to the rules of 

23 subsections (c)(4) and (d) of section 46 (as in effect on 

24 the day before the enactment of the Revenue Reconcili25 ation Act of 1990) shall apply for purposes of this section. 


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1 ‘‘(c) QUALIFIED EMERGING ENERGY PROPERTY.— 

2 For purposes of this section— 

3 ‘‘(1) IN GENERAL.—The term ‘qualified emerg4 ing energy property’ means property which is con5 structed, reconstructed, erected, or acquired by the 

6 taxpayer, and the original use of which commences 

7 with the taxpayer, which is— 

8 ‘‘(A) a qualified production facility (as de9 fined in section 45T(d), determined without re10 gard to paragraph (2) thereof) which is a tier 

11 1 facility (as defined in section 45T(e)(1)), or 

12 ‘‘(B) property which is placed in service at 

13 and used in connection with an existing electric 

14 generating facility which is a point source of air 

15 pollutants and which, with respect to such facil16 ity— 

17 ‘‘(i) contains equipment which can 

18 separate and sequester— 

19 ‘‘(I) not less than 60 percent of 

20 such facility’s maximum hourly car21 bon oxide emission rate, and 

22 ‘‘(II) not less than 100,000 met23 ric tons of qualified carbon oxide (as 

24 defined in section 45Q(c)) annually, 

25 and 


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1 ‘‘(ii) places such carbon oxide in se2 cure geological storage (as determined 

3 under section 45Q(f)(2)). 

4 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—Such 

5 term shall not include— 

6 ‘‘(A) any property which, 

7 ‘‘(B) property any portion of which, or 

8 ‘‘(C) property placed in service at and used 

9 in connection with a facility which, 

10 has been treated as a qualified facility for purposes 

11 of section 45(d), as an advanced nuclear power facil12 ity for purposes of section 45J, as a qualified facility 

13 for purposes of section 45Q, as a qualified produc14 tion facility for purposes of section 45T, as energy 

15 property for purposes of section 48, or as a qualified 

16 investment for purposes of section 48A, 48B, or 

17 48C, for any taxable year. 

18 ‘‘(3) POINT SOURCE.—For purposes of para19 graph (1)(B), the term ‘point source’ means a mega20 watt-scale, stationary and non-mobile, identifiable 

21 source of emissions that releases pollutants into the 

22 atmosphere. 

23 ‘‘(d) FIRST OF ITS KIND TECHNOLOGY.— 

24 ‘‘(1) IN GENERAL.—In the case of any qualified 

25 emerging energy property which is the first of its 


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1 kind, subsection (a) shall be applied by substituting 

2 ‘40’ for ‘30’. 

3 ‘‘(2) FIRST OF ITS KIND.—Property shall be 

4 treated as the first of its kind if such property is 1 

5 of the first 3 original demonstrations in the United 

6 States of a megawatt-scale electric power generation 

7 facility which generates revenue from sales of elec8 tric power to an unrelated person (within the mean9 ing of section 45(e)(4)). 

10 ‘‘(3) DETERMINATION.— 

11 ‘‘(A) IN GENERAL.—The Secretary, in con12 sultation with the Secretary of Energy, shall de13 velop a process to determine whether qualified 

14 emerging energy property is first of its kind. 

15 Such process shall include a certification, at the 

16 request of the taxpayer before the commence17 ment of construction, that the property will be 

18 treated as first of its kind. 

19 ‘‘(B) EFFECTIVE PERIOD OF CERTIFI20 CATION.—Except as provided by the Secretary, 

21 a certification granted under subparagraph (A) 

22 with respect to any property shall be in effect 

23 for the period, not to exceed 5 years, beginning 

24 on the date of the certification and ending on 

25 the date construction commences with respect 


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1 to the property. If construction does not com2 mence within the 5-year period beginning on 

3 the date of the certification, the property shall 

4 not be treated as first of its kind unless the cer5 tification is renewed. 

6 ‘‘(e) TRANSFER OF CREDIT BY CERTAIN PUBLIC EN7 TITIES.— 

8 ‘‘(1) IN GENERAL.—If, with respect to a credit 

9 under subsection (a) for any taxable year— 

10 ‘‘(A) a qualified public entity would be the 

11 taxpayer (but for this paragraph), and 

12 ‘‘(B) such entity elects the application of 

13 this paragraph for such taxable year with re14 spect to all (or any portion specified in such 

15 election) of such credit, the eligible project part16 ner specified in such election, and not the quali17 fied public entity, shall be treated as the tax18 payer for purposes of this title with respect to 

19 such credit (or such portion thereof). 

20 ‘‘(2) DEFINITIONS.—For purposes of this sub21 section— 

22 ‘‘(A) QUALIFIED PUBLIC ENTITY.—The 

23 term ‘qualified public entity’ means— 


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1 ‘‘(i) a Federal, State, or local govern2 ment entity, or any political subdivision, 

3 agency, or instrumentality thereof, 

4 ‘‘(ii) a mutual or cooperative electric 

5 company described in section 501(c)(12) or 

6 1381(a)(2), or 

7 ‘‘(iii) a not-for-profit electric utility 

8 which had or has received a loan or loan 

9 guarantee under the Rural Electrification 

10 Act of 1936. 

11 ‘‘(B) ELIGIBLE PROJECT PARTNER.—The 

12 term ‘eligible project partner’ means any person 

13 who— 

14 ‘‘(i) is responsible for, or participates 

15 in, the design or construction of the quali16 fied emerging energy property to which the 

17 credit under subsection (a) relates, 

18 ‘‘(ii) is a financial institution pro19 viding financing for the construction or op20 eration of such property (other than fi21 nancing provided in connection with be22 coming eligible for the credit under this 

23 section by reason of this subsection), or 

24 ‘‘(iii) has an ownership interest in 

25 such property. 


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1 ‘‘(3) SPECIAL RULES.— 

2 ‘‘(A) APPLICATION TO PARTNERSHIPS.—In 

3 the case of a credit under subsection (a) which 

4 is determined at the partnership level— 

5 ‘‘(i) for purposes of paragraph (1)(A), 

6 a qualified public entity shall be treated as 

7 the taxpayer with respect to such entity’s 

8 distributive share of such credit, and 

9 ‘‘(ii) the term ‘eligible project partner’ 

10 shall include any partner of the partner11 ship. 

12 ‘‘(B) TAXABLE YEAR IN WHICH CREDIT

13 TAKEN INTO ACCOUNT.—In the case of any 

14 credit (or portion thereof) with respect to which 

15 an election is made under paragraph (1), such 

16 credit shall be taken into account in the first 

17 taxable year of the eligible project partner end18 ing with, or after, the qualified public entity’s 

19 taxable year with respect to which the credit 

20 was determined. 

21 ‘‘(C) TREATMENT OF TRANSFER UNDER

22 PRIVATE USE RULES.—For purposes of section 

23 141(b)(1), any benefit derived by an eligible 

24 project partner in connection with an election 


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1 under this subsection shall not be taken into ac2 count as a private business use. 

3 ‘‘(f) CERTAIN RULES NOT APPLICABLE.—Para4 graphs (3) and (4) of section 50(d) shall not apply for 

5 purposes of this section.’’. 

6 (b) SPECIAL RULE FOR PROCEEDS OF TRANSFERS

7 FOR MUTUAL OR COOPERATIVE ELECTRIC COMPANIES.— 

8 Section 501(c)(12)(I) of such Code is amended by insert9 ing ‘‘or 48D(e)’’ after ‘‘section 45J(e)(1)’’. 

10 (c) CONFORMING AMENDMENTS.— 

11 (1) Section 46 of such Code is amended by 

12 striking ‘‘and’’ at the end of paragraph (5), by strik13 ing the period at the end of paragraph (6) and in14 serting ‘‘, and’’, and by adding at the end the fol15 lowing new paragraph: 

16 ‘‘(7) the emerging energy technology credit.’’. 

17 (2) Section 49(a)(1)(C) of such Code is amend18 ed by striking ‘‘and’’ at the end of clause (iv), by 

19 striking the period at the end of clause (v) and in20 serting ‘‘, and’’, and by adding at the end the fol21 lowing new clause: 

22 ‘‘(vi) the basis of any qualified emerg23 ing energy property (as defined in section 

24 48D(c)(1)).’’. 


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1 (3) The table of sections for subpart E of part 

2 IV of subchapter A of chapter 1 of such Code is 

3 amended by inserting after the item relating to sec4 tion 48C the following new item: 

‘‘Sec. 48D. Emerging energy technology credit.’’. 

5 (d) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to property placed in service in 

7 taxable years beginning after the date of the enactment 

8 of this Act, under rules similar to the rules of section 

9 48(m) of the Internal Revenue Code of 1986 (as in effect 

10 on the day before the date of the enactment of the Rev11 enue Reconciliation Act of 1990). 

12 SEC. 4. PRODUCTION CREDIT FOR EMERGING ENERGY 

13 TECHNOLOGY. 

14 (a) IN GENERAL.—Subpart D of part IV of sub15 chapter A of chapter 1 of the Internal Revenue Code of 

16 1986 is amended by adding at the end the following new 

17 section: 

18 ‘‘SEC. 45T. ELECTRICITY PRODUCED FROM EMERGING EN19 ERGY TECHNOLOGY. 

20 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

21 the emerging energy technology production credit deter22 mined under this section for any taxable year beginning 

23 in the credit period with respect to a qualified production 

24 facility of the taxpayer is an amount equal to the applica25 ble percentage of the lesser of— 


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1 ‘‘(1) the annual gross receipts of the taxpayer 

2 from the sale of electricity generated at the qualified 

3 production facility to an unrelated person (within 

4 the meaning of section 45(e)(4)) during such taxable 

5 year, or 

6 ‘‘(2) the product of— 

7 ‘‘(A) the national average wholesale price 

8 of a kilowatt hour of electricity in the preceding 

9 taxable year, as determined by the Secretary in 

10 consultation with the Administrator of the En11 ergy Information Administration, and 

12 ‘‘(B) the number of kilowatt hours of elec13 tricity produced at the qualified production fa14 cility and sold to an unrelated person (within 

15 the meaning of section 45(e)(4)) during the tax16 able year. 

17 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

18 subsection (a), the applicable percentage is— 

19 ‘‘(1) in the case of a tier 1 facility, 60 percent, 

20 ‘‘(2) in the case of a tier 2 facility, 45 percent, 

21 ‘‘(3) in the case of a tier 3 facility, 30 percent, 

22 and 

23 ‘‘(4) in the case of any other facility, zero per24 cent. 


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1 ‘‘(c) CREDIT PERIOD.—For purposes of this section, 

2 the credit period with respect to any qualified production 

3 facility is the 10-year period beginning with the date the 

4 facility was originally placed in service. 

5 ‘‘(d) QUALIFIED PRODUCTION FACILITY.—For pur6 poses of this section— 

7 ‘‘(1) IN GENERAL.—The term ‘qualified produc8 tion facility’ means any electric generating facility 

9 which is certified by the Secretary, which is located 

10 in the United States or a possession of the United 

11 States (as such terms are used in section 638), and 

12 which utilizes— 

13 ‘‘(A) any power conversion fuel-based tech14 nology which captures and sequesters at least 

15 60 percent of the produced carbon oxide, 

16 ‘‘(B) any reactor design licensed by the 

17 Nuclear Regulatory Commission which produces 

18 electricity through nuclear fission or a fusion 

19 chain reaction and which— 

20 ‘‘(i) reduces the high-level radioactive 

21 waste or spent nuclear fuel per unit of en22 ergy yield, 

23 ‘‘(ii) improves fuel utilization by not 

24 less than 20 percent, 


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1 ‘‘(iii) decreases core damage frequency 

2 or large early release frequency by at least 

3 a factor of 10, or 

4 ‘‘(iv) increases thermal efficiency by 

5 not less than 20 percent, as compared to 

6 existing nuclear commercial technologies, 

7 ‘‘(C) any new technology or new improve8 ment to technology which generates electricity 

9 from renewable energy, as defined in section 

10 203(b)(2) of the Energy Policy Act of 2005, 

11 and which generates at least a 20-percent in12 crease in the conversion efficiency or a 20-per13 cent increase in the capacity factor of the facil14 ity as compared with the commercial technology 

15 of the same type as such technology which is 

16 considered to be the best of its type in commer17 cial use, 

18 ‘‘(D) technology which the Secretary, in 

19 consultation with the Secretary of Energy, de20 termines would increase the technical resource 

21 potential for renewable energy development in 

22 the United States by at least 500 terawatt 

23 hours per year, or 

24 ‘‘(E) technology which the Secretary, in 

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1 termines could produce electricity with an emis2 sions rate less than 150g Co2-e per kWh with 

3 a 75-percent capacity factor. 

4 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—Such 

5 term shall not include any facility which has been 

6 treated as a qualified facility for purposes of section 

7 45(d), as an advanced nuclear power facility for pur8 poses of section 45J, as a qualified facility for pur9 poses of section 45Q, as energy property for pur10 poses of section 48, as a qualified investment for 

11 purposes of section 48A, 48B, or 48C, or as quali12 fied emerging energy property for purposes of sec13 tion 48D, for any taxable year. 

14 ‘‘(3) Co2-e.—The term ‘Co2-e’ means the quan15 tity of a greenhouse gas that has a global warming 

16 potential equivalent to 1 metric ton of carbon diox17 ide, as determined under table A–1 of subpart A of 

18 part 98 of title 40, Code of Federal Regulations, as 

19 in effect on the date of enactment of this section. 

20 ‘‘(4) CONVERSION EFFICIENCY.—The term 

21 ‘conversion efficiency’ means the fraction— 

22 ‘‘(A) the numerator of which is the total 

23 useful electrical or thermal power produced by 

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1 ating rates, and expected to be consumed in its 

2 normal application, and 

3 ‘‘(B) the denominator of which is the inci4 dent energy, whether mechanical, radiation, or 

5 thermal energy, which is measurable at the 

6 input of the electric generating facility. 

7 ‘‘(5) ENERGY EFFICIENCY.—The efficiency of 

8 an electric generating facility is the fraction— 

9 ‘‘(A) the numerator of which is the total 

10 useful electrical, thermal, and mechanical power 

11 which is produced by the facility at normal op12 erating rates and expected to be consumed in 

13 its normal operation, and 

14 ‘‘(B) the denominator of which is the lower 

15 heating value of the energy sources for the fa16 cility. 

17 ‘‘(6) PERFORMANCE BASELINE.—Not less fre18 quently than every 10 years, the Secretary, in con19 sultation with the Secretary of Energy, shall estab20 lish baseline levels with respect to the types of elec21 tric generating facilities and the measures of per22 formance described in paragraph (1) which a facility 

23 must exceed in order to meet the requirements of 

24 such paragraph. 


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1 ‘‘(7) COMMERCIAL TECHNOLOGY.—The term 

2 ‘commercial technology’ means a design that has 

3 been installed in and is being used in 3 or more 

4 projects in the United States marketplace in the 

5 same general application as in the electric gener6 ating facility, and has been in such use in at least 

7 1 of such projects for a period of at least 5 years. 

8 ‘‘(8) CORE DAMAGE FREQUENCY.—The term 

9 ‘core damage frequency’ means the likelihood that, 

10 given the way a reactor is designed and operated, an 

11 accident could cause the fuel in the reactor to be 

12 damaged. 

13 ‘‘(9) LARGE EARLY RELEASE FREQUENCY.— 

14 The term ‘large early release frequency’ means the 

15 likelihood of a release into the environment of a suf16 ficiently large quantity of fission products in an 

17 early enough time frame to have the potential for a 

18 prompt fatality. 

19 ‘‘(10) GROSS RECOVERABLE RESOURCE POTEN20 TIAL.—The term ‘gross recoverable resource poten21 tial’ means the subset of total resource potential for 

22 any given renewable energy resource within the 

23 boundaries of the United States economic exclusion 

24 zone that can be considered theoretically recoverable 

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1 straints that exist as of the most recent date on 

2 which the Secretary has established baseline levels 

3 described in paragraph (6). 

4 ‘‘(11) TECHNICAL RESOURCE POTENTIAL.—The 

5 term ‘technical resource potential’ means the subset 

6 of gross recoverable resource potential for any given 

7 renewable energy resource that can be considered re8 coverable under available technological performance 

9 conditions as of the date of the enactment of this 

10 section while considering land-use and environmental 

11 siting constraints. 

12 ‘‘(e) FACILITY TIERS.— 

13 ‘‘(1) TIER 1 FACILITY.—The term ‘tier 1 facil14 ity’ means an electric generating facility using a 

15 type of technology which accounts for less than 1 

16 percent of annual domestic electricity production in 

17 the preceding taxable year, as determined by the 

18 Secretary on the basis of data reported by the En19 ergy Information Administration. 

20 ‘‘(2) TIER 2 FACILITY.—The term ‘tier 2 facil21 ity’ means an electric generating facility using a 

22 type of technology which accounts for at least 1 per23 cent but less than 2 percent of annual domestic elec24 tricity production in the preceding taxable year, as 


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1 determined by the Secretary on the basis of data re2 ported by the Energy Information Administration. 

3 ‘‘(3) TIER 3 FACILITY.—The term ‘tier 3 facil4 ity’ means an electric generating facility using a 

5 type of technology which accounts for at least 2 per6 cent but less than 3 percent of annual domestic elec7 tricity production in the preceding taxable year, as 

8 determined by the Secretary on the basis of data re9 ported by the Energy Information Administration. 

10 ‘‘(f) TRANSFER OF CREDIT BY CERTAIN PUBLIC EN11 TITIES.—Rules similar to the rules of subsection (e) of 

12 section 48D shall apply for purposes of this section. 

13 ‘‘(g) REGULATIONS.— 

14 ‘‘(1) IN GENERAL.—Not later than 1 year after 

15 the date of the enactment of this section, the Sec16 retary shall prescribe such regulations as may be 

17 necessary or appropriate to carry out the purposes 

18 of this section. Such regulations shall include a proc19 ess for making eligibility certifications described in 

20 subsection (d)(1)(E). 

21 ‘‘(2) CERTIFICATION.—The regulations devel22 oped under paragraph (1) shall include a certifi23 cation process under which the Secretary, in con24 sultation with the Secretary of Energy, determines 


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1 the eligibility of facilities for purposes of subsection 

2 (d)(1).’’. 

3 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI4 NESS CREDIT.—Section 38(b) of the Internal Revenue 

5 Code of 1986 is amended by striking ‘‘plus’’ at the end 

6 of paragraph (31), by striking the period at the end of 

7 paragraph (32) and inserting ‘‘, plus’’, and by adding at 

8 the end the following new paragraph: 

9 ‘‘(33) the emerging energy technology produc10 tion credit determined under section 45T(a).’’. 

11 (c) SPECIAL RULE FOR PROCEEDS OF TRANSFERS

12 FOR MUTUAL OR COOPERATIVE ELECTRIC COMPANIES.— 

13 Section 501(c)(12)(I) of such Code, as amended by the 

14 preceding provisions of this Act, is amended by striking 

15 ‘‘or 48D(e)’’ and inserting ‘‘, 45T(f), or 48D(e)’’. 

16 (d) CLERICAL AMENDMENT.—The table of sections 

17 for subpart D of part IV of subchapter A of chapter 1 

18 of the Internal Revenue Code of 1986 is amended by add19 ing at the end the following new item: 

‘‘Sec. 45T. Electricity produced from emerging energy technology.’’. 

20 (e) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to electricity produced and sold 

22 in taxable years beginning after the date of the enactment 

23 of this Act, at facilities placed in service after such date 

24 of enactment. 


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1 SEC. 5. ENERGY CREDIT FOR ENERGY STORAGE TECH2 NOLOGIES. 

3 (a) IN GENERAL.—Section 48(a)(2)(A)(i) of the In4 ternal Revenue Code of 1986 is amended by striking 

5 ‘‘and’’ at the end of subclause (III) and by inserting after 

6 subclause (IV) the following new subclause: 

7 ‘‘(V) energy property described in 

8 paragraph (3)(A)(viii), and’’. 

9 (b) ENERGY STORAGE TECHNOLOGIES.—Section 

10 48(a)(3)(A) of such Code is amended by striking ‘‘or’’ at 

11 the end of clause (vi), by adding ‘‘or’’ at the end of clause 

12 (vii), and by adding at the end the following new clause: 

13 ‘‘(viii) equipment which receives, 

14 stores, and delivers energy using batteries, 

15 compressed air, pumped hydropower, hy16 drogen storage (including hydrolysis), ther17 mal energy storage, regenerative fuel cells, 

18 flywheels, capacitors, superconducting 

19 magnets, or other technologies identified 

20 by the Secretary, in consultation with the 

21 Secretary of Energy,’’. 

22 (c) NATIONAL LIMITATION RELATING TO ENERGY

23 STORAGE PROPERTY.—Section 48(a)(5) of such Code is 

24 amended by adding at the end the following new subpara25 graph: 


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1 ‘‘(F) NATIONAL LIMITATION RELATING TO

2 ENERGY STORAGE PROPERTY.— 

3 ‘‘(i) IN GENERAL.—The amount of 

4 credit which (but for this subsection) 

5 would be allowed with respect to all equip6 ment described in subsection (a)(3)(A)(viii) 

7 for any taxable year shall not exceed the 

8 national megawatt capacity limitation for 

9 energy storage property allocated to the 

10 project of which such equipment is a part. 

11 ‘‘(ii) AMOUNT OF NATIONAL CREDIT

12 LIMITATION.— 

13 ‘‘(I) IN GENERAL.—The aggre14 gate amount of national megawatt ca15 pacity limitation allocated to projects 

16 under clause (i) shall not exceed 

17 20,000 megawatts. 

18 ‘‘(II) LIMITATION ON LITHIUM

19 ION ELECTRIC STORAGE BAT20 TERIES.—The Secretary shall ensure 

21 that not more than 15,000 megawatts 

22 of the national megawatt capacity lim23 itation are allocated to projects for 

24 lithium ion electric storage batteries, 

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1 ment of a diverse suite of techno2 logical designs. 

3 ‘‘(iii) ALLOCATION.— 

4 ‘‘(I) ESTABLISHMENT OF PRO5 GRAM.—Not later than 180 days after 

6 the date of enactment of this subpara7 graph, the Secretary, in consultation 

8 with the Secretary of Energy, shall 

9 develop a process to allocate national 

10 megawatt capacity limitation under 

11 this subparagraph. 

12 ‘‘(II) APPLICATIONS.—Each ap13 plicant for allocations under this sub14 paragraph shall submit an application 

15 to the Secretary. The Secretary shall 

16 issue a determination as whether an 

17 applicant has been allocated national 

18 megawatt capacity limitation not later 

19 than 60 days after the date of the 

20 submission of a completed application 

21 under this subclause. 

22 ‘‘(III) TIME LIMIT ON BEGIN23 NING AND COMPLETING CONSTRUC24 TION.—An allocation of national 

25 megawatt capacity limitation under 


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1 this clause shall be void unless the 

2 taxpayer begins construction of the 

3 project not later than the date which 

4 is 1 year after the date on which such 

5 allocation is made and completes con6 struction of such project not later 

7 than the date which 5 years after the 

8 date on which such construction be9 gins. 

10 ‘‘(IV) REALLOCATION OF UN11 USED LIMITATION.—The Secretary 

12 shall reallocate national megawatt ca13 pacity limitation (and such realloca14 tion shall not be taken into account in 

15 applying the limitation of clause 

16 (ii)(I)) to the extent that any alloca17 tion is void under subclause (III) or to 

18 the extent that the credit attributable 

19 to such allocation is recaptured under 

20 section 50(a).’’. 

21 (d) TRANSFER OF ENERGY STORAGE PROPERTY

22 CREDIT BY CERTAIN PUBLIC ENTITIES.—Section 48 of 

23 such Code is amended by adding at the end the following 

24 new subsection: 


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1 ‘‘(e) TRANSFER OF ENERGY STORAGE PROPERTY

2 CREDIT BY CERTAIN PUBLIC ENTITIES.—In the case of 

3 any property described in subsection (a)(3)(A)(viii), rules 

4 similar to the rules of subsection (e) of section 48D shall 

5 apply for purposes of this section.’’. 

6 (e) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to property placed in service in 

8 taxable years beginning after the date of the enactment 

9 of this Act, under rules similar to the rules of section 

10 48(m) of the Internal Revenue Code of 1986 (as in effect 

11 on the day before the date of the enactment of the Rev12 enue Reconciliation Act of 1990). 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS