I 

116TH CONGRESS 

2D SESSION H. R. 7172 

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 

JUNE 11, 2020 

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 


pbinns on DSKJLVW7X2PROD with BILLS
2 

•HR 7172 IH

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.— 

6 ‘‘(1) IN GENERAL.—For purposes of section 46, 

7 the qualifying electric power transmission line credit 

8 for any taxable year is an amount equal to the appli9 cable percentage of the qualified investment for such 

10 taxable year with respect to any qualifying electric 

11 power transmission line property of the taxpayer. 

12 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

13 of paragraph (1), the applicable percentage shall be 

14 equal to— 

15 ‘‘(A) in the case of any qualifying electric 

16 power transmission line property relating to an 

17 overhead transmission facility, 15 percent, and 

18 ‘‘(B) in the case of any qualifying electric 

19 power transmission line property relating to an 

20 underground or submarine transmission facility, 

21 25 percent. 

22 ‘‘(b) QUALIFYING INVESTMENT.— 

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

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

25 the basis of any qualifying electric power transVerDate Sep 11 2014 01:11 Jun 29, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7172.IH H7172

pbinns on DSKJLVW7X2PROD with BILLS
3 

•HR 7172 IH

1 mission line property placed in service by the tax2 payer during such taxable year. 

3 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI4 TURES RULES MADE APPLICABLE.—Rules similar to 

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

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

7 Revenue Reconciliation Act of 1990) shall apply for 

8 purposes of this section. 

9 ‘‘(c) QUALIFYING ELECTRIC POWER TRANSMISSION

10 LINE PROPERTY.—The term ‘qualifying electric power 

11 transmission line property’ means— 

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

13 transmission facility which— 

14 ‘‘(A) is capable of transmitting electricity 

15 at a voltage of not less than 345 kilovolts, 

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

17 less than 1,000 megawatts, 

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

19 current transmission line, and 

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

21 rural area or offshore, and 

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

23 insulators, reactors, capacitors, circuit breakers, 

24 static VAR compensators, static synchronous com25 pensators, power converters, transformers, synVerDate Sep 11 2014 01:11 Jun 29, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7172.IH H7172

pbinns on DSKJLVW7X2PROD with BILLS
4 

•HR 7172 IH

1 chronous condensers, braking resistors, and any an2 cillary facilities and equipment necessary for the 

3 proper operation of the facility described in para4 graph (1). 

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

6 any property placed in service after December 31, 2029.’’. 

7 (b) CONFORMING AMENDMENTS.— 

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

9 1986 is amended— 

10 (A) by striking ‘‘and’’ at the end of para11 graph (5), 

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

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

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

15 paragraph: 

16 ‘‘(7) the qualifying electric power transmission 

17 line credit.’’. 

18 (2) Section 49(a)(1)(C) of such Code is amend19 ed— 

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

21 (iv), 

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

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

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

25 clause: 


pbinns on DSKJLVW7X2PROD with BILLS
5 

•HR 7172 IH

1 ‘‘(vi) the basis of any qualifying elec2 tric power transmission line property under 

3 section 48D.’’. 

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

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

6 amended by inserting after the item relating to sec7 tion 48C the following new item: 

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

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

9 this section shall apply to property placed in service after 

10 December 31, 2019. 

Æ 


pbinns on DSKJLVW7X2PROD with BILLS