II 

111TH CONGRESS 

1ST SESSION S. 1091 

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

investment credit for energy storage property connected to the grid, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 20, 2009 

Mr. WYDEN 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 

for an energy investment credit for energy storage property connected to the grid, 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 ‘‘Storage Technology 

5 of Renewable and Green Energy Act of 2009’’ or the 

6 ‘‘STORAGE Act of 2009’’. 


jbell on PROD1PC69 with BILLS
2 

•S 1091 IS

1 SEC. 2. ENERGY INVESTMENT CREDIT FOR ENERGY STOR2 AGE PROPERTY CONNECTED TO THE GRID. 

3 (a) 20 PERCENT CREDIT ALLOWED.—Subparagraph 

4 (A) of section 48(a)(2) of the Internal Revenue Code of 

5 1986 is amended— 

6 (1) by striking ‘‘and’’ at the end of subclause 

7 (IV) of clause (i), 

8 (2) by striking ‘‘clause (i)’’ in clause (ii) and in9 serting ‘‘clause (i) or (ii)’’, 

10 (3) by redesignating clause (ii) as clause (iii), 

11 and 

12 (4) by inserting after clause (i) the following 

13 new clause: 

14 ‘‘(ii) 20 percent in the case of quali15 fied energy storage property, and’’. 

16 (b) QUALIFIED ENERGY STORAGE PROPERTY.—Sub17 section (c) of section 48 of the Internal Revenue Code of 

18 1986 is amended by adding at the end the following new 

19 paragraph: 

20 ‘‘(5) QUALIFIED ENERGY STORAGE PROP21 ERTY.— 

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

23 energy storage property’ means property— 

24 ‘‘(i) which is directly connected to the 

25 electrical grid, and 


jbell on PROD1PC69 with BILLS
3 

•S 1091 IS

1 ‘‘(ii) which is designed to receive elec2 trical energy, to store such energy, and to 

3 convert such energy to electricity and de4 liver such electricity for sale. 

5 Such term may include hydroelectric pumped 

6 storage and compressed air energy storage, re7 generative fuel cells, batteries, superconducting 

8 magnetic energy storage, flywheels, thermal, 

9 and hydrogen storage, or combination thereof. 

10 ‘‘(B) MINIMUM CAPACITY.—The term 

11 ‘qualified energy storage property’ shall not in12 clude any property unless such property in ag13 gregate— 

14 ‘‘(i) has the ability to store at least 2 

15 megawatt hours of energy, and 

16 ‘‘(ii) has the ability to have an output 

17 of 500 kilowatts of electricity for a period 

18 of 4 hours. 

19 ‘‘(C) ELECTRICAL GRID.—The term ‘elec20 trical grid’ means the system of generators, 

21 transmission lines, and distribution facilities 

22 which— 

23 ‘‘(i) are under the jurisdiction of the 

24 Federal Energy Regulatory Commission or 

25 State public utility commissions, or 


jbell on PROD1PC69 with BILLS
4 

•S 1091 IS

1 ‘‘(ii) are owned by— 

2 ‘‘(I) a State or any political sub3 division of a State, 

4 ‘‘(II) an electric cooperative that 

5 receives financing under the Rural 

6 Electrification Act of 1936 (7 U.S.C. 

7 901 et seq.) or that sells less than 

8 4,000,000 megawatt hours of elec9 tricity per year, or 

10 ‘‘(III) any agency, authority, or 

11 instrumentality of any one or more of 

12 the entities described in subclause (I) 

13 or (II), or any corporation which is 

14 wholly owned, directly or indirectly, by 

15 any one or more of such entities.’’. 

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

17 this section shall apply to periods after the date of the 

18 enactment of this Act, under rules similar to the rules of 

19 section 48(m) of the Internal Revenue Code of 1986 (as 

20 in effect on the day before the date of the enactment of 

21 the Revenue Reconciliation Act of 1990). 


jbell on PROD1PC69 with BILLS
5 

•S 1091 IS

1 SEC. 3. ENERGY STORAGE PROPERTY CONNECTED TO THE 

2 GRID ELIGIBLE FOR NEW CLEAN RENEWABLE 

3 ENERGY BONDS. 

4 (a) IN GENERAL.—Paragraph (1) of section 54C(d) 

5 of the Internal Revenue Code of 1986 is amended to read 

6 as follows: 

7 ‘‘(1) QUALIFIED RENEWABLE ENERGY FACIL8 ITY.—The term ‘qualified renewable energy facility’ 

9 means a facility which is— 

10 ‘‘(A)(i) a qualified facility (as determined 

11 under section 45(d) without regard to para12 graphs (8) and (10) thereof and to any placed 

13 in service date), or 

14 ‘‘(ii) a qualified energy storage property 

15 (as defined in section 48(c)(5)), and 

16 ‘‘(B) owned by a public power provider, a 

17 governmental body, or a cooperative electric 

18 company.’’. 

19 (b) EFFECTIVE DATE.—The amendment made by 

20 this section shall apply to obligations issued after the date 

21 of the enactment of this Act. 

22 SEC. 4. ENERGY INVESTMENT CREDIT FOR ONSITE ENERGY 

23 STORAGE. 

24 (a) CREDIT ALLOWED.—Clause (i) of section 

25 48(a)(2)(A) of the Internal Revenue Code of 1986, as 

26 amended by this Act, is amended— 


jbell on PROD1PC69 with BILLS
6 

•S 1091 IS

1 (1) by striking ‘‘and’’ at the end of subclause 

2 (III), 

3 (2) by inserting ‘‘and’’ at the end of subclause 

4 (IV), and 

5 (3) by adding at the end the following new sub6 clause: 

7 ‘‘(V) qualified onsite energy stor8 age property,’’. 

9 (b) QUALIFIED ONSITE ENERGY STORAGE PROP10 ERTY.—Subsection (c) of section 48 of the Internal Rev11 enue Code of 1986, as amended by this Act, is amended 

12 by adding at the end the following new paragraph: 

13 ‘‘(6) QUALIFIED ONSITE ENERGY STORAGE

14 PROPERTY.— 

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

16 onsite energy storage property’ means property 

17 which— 

18 ‘‘(i) provides supplemental energy to 

19 reduce peak energy requirements primarily 

20 on the same site where the storage is lo21 cated, or 

22 ‘‘(ii) is designed and used primarily to 

23 receive and store intermittent renewable 

24 energy generated onsite and to deliver such 

25 energy primarily for onsite consumption. 


jbell on PROD1PC69 with BILLS
7 

•S 1091 IS

1 Such term may include property used to charge 

2 plug-in and hybrid electric vehicles if such vehi3 cles are equipped with smart grid services which 

4 control time-of-day charging and discharging of 

5 such vehicles. Such term shall not include any 

6 property for which any other credit is allowed 

7 under this chapter. 

8 ‘‘(B) MINIMUM CAPACITY.—The term 

9 ‘qualified onsite energy storage property’ shall 

10 not include any property unless such property 

11 in aggregate— 

12 ‘‘(i) has the ability to store the energy 

13 equivalent of at least 20 kilowatt hours of 

14 energy, and 

15 ‘‘(ii) has the ability to have an output 

16 of the energy equivalent of 5 kilowatts of 

17 electricity for a period of 4 hours.’’. 

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

19 this section shall apply to periods after the date of the 

20 enactment of this Act, under rules similar to the rules of 

21 section 48(m) of the Internal Revenue Code of 1986 (as 

22 in effect on the day before the date of the enactment of 

23 the Revenue Reconciliation Act of 1990). 


jbell on PROD1PC69 with BILLS
8 

•S 1091 IS

1 SEC. 5. CREDIT FOR RESIDENTIAL ENERGY STORAGE 

2 EQUIPMENT. 

3 (a) CREDIT ALLOWED.—Subsection (a) of section 

4 25C of the Internal Revenue Code of 1986 is amended— 

5 (1) by striking ‘‘and’’ at the end of paragraph 

6 (1), 

7 (2) by redesignating paragraph (2) as para8 graph (3), and 

9 (3) by inserting after paragraph (1) the fol10 lowing new paragraph: 

11 ‘‘(2) 30 percent of the amount paid or incurred 

12 by the taxpayer for qualified residential energy stor13 age equipment installed during such taxable year, 

14 and’’. 

15 (b) QUALIFIED RESIDENTIAL ENERGY STORAGE

16 EQUIPMENT.— 

17 (1) IN GENERAL.—Section 25C of the Internal 

18 Revenue Code of 1986 is amended— 

19 (A) by redesignating subsections (e), (f), 

20 and (g) as subsections (f), (g), and (h), respec21 tively, and 

22 (B) by inserting after subsection (d) the 

23 following new subsection: 

24 ‘‘(d) QUALIFIED RESIDENTIAL ENERGY STORAGE

25 EQUIPMENT.—For purposes of this section, the term 


jbell on PROD1PC69 with BILLS
9 

•S 1091 IS

1 ‘qualified residential energy storage equipment’ means 

2 property— 

3 ‘‘(1) which is installed in or on a dwelling unit 

4 located in the United States and owned and used by 

5 the taxpayer as the taxpayer’s principal residence 

6 (within the meaning of section 121), or on property 

7 owned by the taxpayer on which such a dwelling unit 

8 is located, and 

9 ‘‘(2) which— 

10 ‘‘(A) provides supplemental energy to re11 duce peak energy requirements primarily on the 

12 same site where the storage is located, or 

13 ‘‘(B) is designed and used primarily to re14 ceive and store intermittent renewable energy 

15 generated onsite and to deliver such energy pri16 marily for onsite consumption. 

17 Such term may include property used to charge plug-in 

18 and hybrid electric vehicles if such vehicles are equipped 

19 with smart grid services which control time-of-day charg20 ing and discharging of such vehicles. Such term shall not 

21 include any property for which any other credit is allowed 

22 under this chapter.’’. 

23 (2) CONFORMING AMENDMENT.—Section 

24 1016(a)(33) of such Code is amended by striking 

25 ‘‘section 25C(f)’’ and inserting ‘‘section 25C(g)’’. 


jbell on PROD1PC69 with BILLS
10 

•S 1091 IS

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

2 this section shall apply to property placed in service after 

3 the date of the enactment of this Act. 

Æ 


jbell on PROD1PC69 with BILLS