II 

115TH CONGRESS 

1ST SESSION S. 1868 

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 

SEPTEMBER 26, 2017 

Mr. HEINRICH (for himself, Mr. HELLER, Mr. SCHATZ, Mr. FRANKEN, Mr. 

KING, Ms. HIRONO, Mrs. FEINSTEIN, and Mr. REED) 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. 

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 Storage Tax 

5 Incentive and Deployment Act of 2017’’. 

6 SEC. 2. ENERGY CREDIT FOR ENERGY STORAGE TECH7 NOLOGIES. 

8 (a) IN GENERAL.—Subclause (II) of section 

9 48(a)(2)(A)(i) of the Internal Revenue Code of 1986 is 


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1 amended by striking ‘‘paragraph (3)(A)(i)’’ and inserting 

2 ‘‘clause (i) or (viii) of paragraph (3)(A)’’. 

3 (b) ENERGY STORAGE TECHNOLOGIES.—Subpara4 graph (A) of section 48(a)(3) of the Internal Revenue 

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

6 clause (vi), by adding ‘‘or’’ at the end of clause (vii), and 

7 by adding at the end the following new clause: 

8 ‘‘(viii) equipment which receives, 

9 stores, and delivers energy using batteries, 

10 compressed air, pumped hydropower, hy11 drogen storage (including hydrolysis), ther12 mal energy storage, regenerative fuel cells, 

13 flywheels, capacitors, superconducting 

14 magnets, or other technologies identified 

15 by the Secretary in consultation with the 

16 Secretary of Energy, and which has a ca17 pacity of not less than 5 kilowatt hours,’’. 

18 (c) PHASEOUT OF CREDIT.—Paragraph (6) of sec19 tion 48(a) of the Internal Revenue Code of 1986 is amend20 ed— 

21 (1) by striking ‘‘ENERGY’’ in the heading and 

22 inserting ‘‘AND ENERGY STORAGE’’; and 

23 (2) by striking ‘‘paragraph (3)(A)(i)’’ both 

24 places it appears and inserting ‘‘clause (i) or (viii) 

25 of paragraph (3)(A)’’. 


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

2 this section shall apply to property placed in service after 

3 December 31, 2016. 

4 SEC. 3. RESIDENTIAL ENERGY EFFICIENT PROPERTY 

5 CREDIT FOR BATTERY STORAGE TECH6 NOLOGY. 

7 (a) IN GENERAL.—Subsection (a) of section 25D of 

8 the Internal Revenue Code of 1986 is amended by striking 

9 ‘‘and’’ at the end of paragraph (4), by striking the period 

10 at the end of paragraph (5) and inserting ‘‘, and’’, and 

11 by adding at the end the following new paragraph: 

12 ‘‘(6) the applicable percentage of the qualified 

13 battery storage technology expenditures made by the 

14 taxpayer during such year.’’. 

15 (b) QUALIFIED BATTERY STORAGE TECHNOLOGY

16 EXPENDITURE.—Subsection (d) of section 25D of the In17 ternal Revenue Code of 1986 is amended by adding at the 

18 end the following new paragraph: 

19 ‘‘(6) QUALIFIED BATTERY STORAGE TECH20 NOLOGY EXPENDITURE.—The term ‘qualified bat21 tery storage technology expenditure’ means an ex22 penditure for battery storage technology which— 

23 ‘‘(A) is installed on or in connection with 

24 a dwelling unit located in the United States and 

25 used as a residence by the taxpayer, and 


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1 ‘‘(B) has a capacity of not less than 3 kilo2 watt hours.’’. 

3 (c) APPLICABLE PERCENTAGE.—Subsection (g) of 

4 section 25D of the Internal Revenue Code of 1986 is 

5 amended by striking ‘‘(1) and (2)’’ and inserting ‘‘(1), (2), 

6 and (6)’’. 

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

8 this section shall apply to expenditures paid or incurred 

9 in taxable years beginning after December 31, 2016. 

Æ 


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