Energy Opportunity Zones Act of 2018

To amend the Internal Revenue Code of 1986 to provide for energy opportunity zones. 1. Short title This Act may be cited as the Energy Opportunity Zones Act of 2018 2. Opportunity zones (a) In general Chapter 1 Z Energy opportunity Zones 1400Z–1. Energy opportunity zones (a) Production tax credit In the case of a qualified facility located within an energy opportunity zone, section 45 shall be administered as if— (1) subsection (b)(5) did not apply, (2) 2050 2020 (3) 2050 2017 (4) 2050 2017 (5) 2050 2017 (6) 2050 2017 (7) 2050 2017 (8) 2050 2017 (b) Investment tax credit In the case of energy property placed in service within an energy opportunity zone, section 48 shall be administered as if— (1) 2050 2022 (2) 2050 2017 (3) 2050 2017 2050 2020 (4) paragraphs (5)(E) and (6) of subsection (a) did not apply, (5) paragraphs (1)(D) and (2)(D) of subsection (c) did not apply, (6) 2050 2017 (7) subsection (c)(4)(C) did not apply. (c) Energy opportunity zone defined For the purposes of this section, the term energy opportunity zone . (b) Clerical amendment The table of subchapters for chapter 1 of such Code is amended by adding at the end the following new item: Subchapter Z. Energy opportunity zones . (c) Effective date The amendments made by this section shall apply with respect to taxable years beginning after the date of the enactment of this Act. 3. Energy credit for qualified offshore wind facilities (a) In general Section 48 (1) in subsection (a)— (A) in paragraph (2)(A)(i)— (i) in subclause (II), by striking paragraph (3)(A)(i) clause (i) or (ix) of paragraph (3)(A) (ii) by striking and (iii) by adding at the end the following new subclause: (V) qualified offshore wind property, and , and (B) in paragraph (3)(A)— (i) in clause (vi), by striking or (ii) by adding at the end the following new clause: (viii) qualified offshore wind property, but only with respect to property the construction of which begins before January 1, 2026, or (ix) equipment which receives, stores, and delivers energy using batteries, compressed air, pumped hydropower, hydrogen storage (including hydrolysis), thermal energy storage, regenerative fuel cells, fly­wheels, capacitors, superconducting mag­nets, or other technologies identified by the Secretary in consultation with the Secretary of Energy, and which has a capacity of not less than 5 megawatt hours, , and (2) in subsection (c), by adding at the end the following new paragraph: (5) Qualified offshore wind property (A) In general The term qualified offshore wind property (i) uses wind to produce electricity, and (ii) is located not farther than 50 miles from the boundary of an energy opportunity zone (as defined in section 1400Z–1). (B) Offshore facility The term offshore facility . (b) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2016.

Summary: Energy Opportunity Zones Act of 2018 This bill amends the Internal Revenue Code to extend several tax credits related to renewable energy for facilities and energy property located in or placed in service within an energy opportunity zone. An "energy opportunity zone" is a municipality or county that has within its boundaries a nuclear power plant that ceased operation during the 10-year period beginning on January 1, 2018. The bill also expands the tax credit for investments in energy property to include (1) certain offshore wind property that is located within 50 miles from the boundary of an energy opportunity zone; and (2) other specified equipment that receives, stores, and delivers energy and has a capacity of at least 5 megawatt hours.