I 

115TH CONGRESS 

2D SESSION H. R. 5441 

To amend the Internal Revenue Code of 1986 to provide for energy 

opportunity zones. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 9, 2018 

Mr. CARBAJAL 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 

for energy opportunity zones. 

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 Opportunity 

5 Zones Act of 2018’’. 

6 SEC. 2. OPPORTUNITY ZONES. 

7 (a) IN GENERAL.—Chapter 1 of the Internal Rev8 enue Code of 1986 is amended by adding at the end the 

9 following: 


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1 ‘‘Subchapter Z—Energy Opportunity Zones 

2 ‘‘SEC. 1400Z–1. ENERGY OPPORTUNITY ZONES. 

3 ‘‘(a) PRODUCTION TAX CREDIT.—In the case of a 

4 qualified facility located within an energy opportunity 

5 zone, section 45 shall be administered as if— 

6 ‘‘(1) subsection (b)(5) did not apply, 

7 ‘‘(2) ‘2050’ were substituted for ‘2020’ in sub8 section (d)(1), 

9 ‘‘(3) ‘2050’ were substituted for ‘2017’ each 

10 place such term appears in subsection (d)(2)(A), 

11 ‘‘(4) ‘2050’ were substituted for ‘2017’ each 

12 place such term appears in subsection (d)(3)(A)(i), 

13 ‘‘(5) ‘2050’ were substituted for ‘2017’ in sub14 section (d)(4)(B), 

15 ‘‘(6) ‘2050’ were substituted for ‘2017’ in para16 graphs (6) and (7) of subsection (d), 

17 ‘‘(7) ‘2050’ were substituted for ‘2017’ each 

18 place such term appears in subsection (d)(9), and 

19 ‘‘(8) ‘2050’ were substituted for ‘2017’ in sub20 section (d)(11)(B). 

21 ‘‘(b) INVESTMENT TAX CREDIT.—In the case of en22 ergy property placed in service within an energy oppor23 tunity zone, section 48 shall be administered as if— 

24 ‘‘(1) ‘2050’ were substituted for ‘2022’ in sub25 section (a)(2)(A)(i)(II), 


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1 ‘‘(2) ‘2050’ were substituted for ‘2017’ in 

2 clauses (ii) and (vii) of subsection (a)(3)(A), 

3 ‘‘(3) ‘2050’ were substituted for ‘2017’ and 

4 ‘2050’ were substituted for ‘2020’ in subsection 

5 (a)(5)(C)(ii), 

6 ‘‘(4) paragraphs (5)(E) and (6) of subsection 

7 (a) did not apply, 

8 ‘‘(5) paragraphs (1)(D) and (2)(D) of sub9 section (c) did not apply, 

10 ‘‘(6) ‘2050’ were substituted for ‘2017’ in sub11 section (c)(3)(A)(iv), and 

12 ‘‘(7) subsection (c)(4)(C) did not apply. 

13 ‘‘(c) ENERGY OPPORTUNITY ZONE DEFINED.—For 

14 the purposes of this section, the term ‘energy opportunity 

15 zone’ means a municipality or county that has within its 

16 boundaries a nuclear power plant that ceased operation 

17 during the 10-year period beginning on January 1, 

18 2018.’’. 

19 (b) CLERICAL AMENDMENT.—The table of sub20 chapters for chapter 1 of such Code is amended by adding 

21 at the end the following new item: 

22 ‘‘Subchapter Z. Energy opportunity zones’’. 

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

24 this section shall apply with respect to taxable years begin25 ning after the date of the enactment of this Act. 


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1 SEC. 3. ENERGY CREDIT FOR QUALIFIED OFFSHORE WIND 

2 FACILITIES. 

3 (a) IN GENERAL.—Section 48 of the Internal Rev4 enue Code of 1986 is amended— 

5 (1) in subsection (a)— 

6 (A) in paragraph (2)(A)(i)— 

7 (i) in subclause (II), by striking 

8 ‘‘paragraph (3)(A)(i)’’ and inserting 

9 ‘‘clause (i) or (ix) of paragraph (3)(A)’’, 

10 (ii) by striking ‘‘and’’ at the end of 

11 subclause (III), and 

12 (iii) by adding at the end the fol13 lowing new subclause: 

14 ‘‘(V) qualified offshore wind 

15 property, and’’, and 

16 (B) in paragraph (3)(A)— 

17 (i) in clause (vi), by striking ‘‘or’’ at 

18 the end, 

19 (ii) by adding at the end the following 

20 new clause: 

21 ‘‘(viii) qualified offshore wind prop22 erty, but only with respect to property the 

23 construction of which begins before Janu24 ary 1, 2026, or 

25 ‘‘(ix) equipment which receives, stores, 

26 and delivers energy using batteries, comVerDate Sep 11 2014 22:02 Apr 09, 2018 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5441.IH H5441

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1 pressed air, pumped hydropower, hydrogen 

2 storage (including hydrolysis), thermal en3 ergy storage, regenerative fuel cells, fly4 wheels, capacitors, superconducting mag5 nets, or other technologies identified by the 

6 Secretary in consultation with the Sec7 retary of Energy, and which has a capacity 

8 of not less than 5 megawatt hours,’’, and 

9 (2) in subsection (c), by adding at the end the 

10 following new paragraph: 

11 ‘‘(5) QUALIFIED OFFSHORE WIND PROPERTY.— 

12 ‘‘(A) IN GENERAL.—The term ‘qualified 

13 offshore wind property’ means an offshore facil14 ity, other than qualified small wind energy 

15 property, that— 

16 ‘‘(i) uses wind to produce electricity, 

17 and 

18 ‘‘(ii) is located not farther than 50 

19 miles from the boundary of an energy op20 portunity zone (as defined in section 

21 1400Z–1). 

22 ‘‘(B) OFFSHORE FACILITY.—The term 

23 ‘offshore facility’ means any facility located in 

24 the inland navigable waters of the United 

25 States, including the Great Lakes, or in the 


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1 coastal waters of the United States, including 

2 the territorial seas of the United States, the ex3 clusive economic zone of the United States, and 

4 the outer Continental Shelf of the United 

5 States.’’. 

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

7 this section shall apply to property placed in service after 

8 December 31, 2016. 

Æ 


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