I 

117TH CONGRESS 

1ST SESSION H. R. 2406 

To amend the Internal Revenue Code of 1986 to establish a tax credit 

for installation of regionally significant electric power transmission lines. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 8, 2021 

Mr. HORSFORD (for himself and Mrs. LEE of Nevada) 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 establish 

a tax credit for installation of regionally significant electric power transmission lines. 

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 ‘‘Electric Power Infra5 structure Improvement Act’’. 

6 SEC. 2. ESTABLISHMENT OF ELECTRIC POWER TRANS7 MISSION LINES. 

8 (a) IN GENERAL.—Subpart E of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by inserting after section 48C the fol2 lowing new section: 

3 ‘‘SEC. 48D. QUALIFYING ELECTRIC POWER TRANSMISSION 

4 LINE CREDIT. 

5 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec6 tion 46, the qualifying electric power transmission line 

7 credit for any taxable year is an amount equal to 30 per8 cent of the qualified investment for such taxable year with 

9 respect to any qualifying electric power transmission line 

10 property of the taxpayer. 

11 ‘‘(b) QUALIFYING INVESTMENT.— 

12 ‘‘(1) IN GENERAL.—For purposes of subsection 

13 (a), the qualified investment for any taxable year is 

14 the basis of any qualifying electric power trans15 mission line property placed in service by the tax16 payer during such taxable year. 

17 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI18 TURES RULES MADE APPLICABLE.—Rules similar to 

19 the rules of subsections (c)(4) and (d) of section 46 

20 (as in effect on the day before the enactment of the 

21 Revenue Reconciliation Act of 1990) shall apply for 

22 purposes of this section. 

23 ‘‘(c) QUALIFYING ELECTRIC POWER TRANSMISSION

24 LINE PROPERTY.—The term ‘qualifying electric power 

25 transmission line property’ means— 


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1 ‘‘(1) any overhead, submarine, or underground 

2 transmission facility which— 

3 ‘‘(A) is capable of transmitting electricity 

4 at a voltage of not less than 275 kilovolts, 

5 ‘‘(B) has a transmission capacity of not 

6 less than 500 megawatts, 

7 ‘‘(C) is an alternating current or direct 

8 current transmission line, and 

9 ‘‘(D) delivers power produced in either a 

10 rural area or offshore, and 

11 ‘‘(2) any conductors or cables, towers, 

12 insulators, reactors, capacitors, circuit breakers, 

13 static VAR compensators, static synchronous com14 pensators, power converters, transformers, syn15 chronous condensers, braking resistors, and any an16 cillary facilities and equipment necessary for the 

17 proper operation of the facility described in para18 graph (1). 

19 ‘‘(d) TERMINATION.—This section shall not apply to 

20 any property placed in service after December 31, 2031.’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) Section 46 of the Internal Revenue Code of 

23 1986 is amended— 

24 (A) by striking ‘‘and’’ at the end of para25 graph (5), 


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1 (B) by striking the period at the end of 

2 paragraph (6) and inserting ‘‘, and’’, and 

3 (C) by adding at the end the following new 

4 paragraph: 

5 ‘‘(7) the qualifying electric power transmission 

6 line credit.’’. 

7 (2) Section 49(a)(1)(C) of such Code is amend8 ed— 

9 (A) by striking ‘‘and’’ at the end of clause 

10 (iv), 

11 (B) by striking the period at the end of 

12 clause (v) and inserting ‘‘, and’’, and 

13 (C) by adding at the end the following new 

14 clause: 

15 ‘‘(vi) the basis of any qualifying elec16 tric power transmission line property under 

17 section 48D.’’. 

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

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

20 amended by inserting after the item relating to sec21 tion 48C the following new item: 

‘‘Sec. 48D. Qualifying electric power transmission line credit.’’. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to property placed in service after 

24 December 31, 2021. 

Æ 


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