I 
113TH CONGRESS 
1ST SESSION H. R. 1465 
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 HOUSE OF REPRESENTATIVES 
APRIL 10, 2013 
Mr. GIBSON (for himself and Mr. THOMPSON of California) 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 an energy investment credit for energy storage prop-
erty connected to the grid, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Storage Technology 
for Renewable and Green Energy Act of 2013’’ or the 
‘‘STORAGE 2013 Act’’. 
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SEC. 2. ENERGY INVESTMENT CREDIT FOR ENERGY STOR-
AGE PROPERTY CONNECTED TO THE GRID. 
(a) UP TO 30 PERCENT CREDIT ALLOWED.—Sub-
paragraph (A) of section 48(a)(2) of the Internal Revenue 
Code of 1986 is amended— 
(1) by striking ‘‘and’’ at the end of subclause 
(IV) of clause (i), 
(2) by striking ‘‘clause (i)’’ in clause (ii) and in-
serting ‘‘clause (i) or (ii)’’, 
(3) by redesignating clause (ii) as clause (iii), 
and 
(4) by inserting after clause (i) the following 
new clause: 
‘‘(ii) 
as 
provided 
in 
subsection 
(c)(5)(D), up to 30 percent in the case of 
qualified energy storage property, and’’. 
(b) QUALIFIED ENERGY STORAGE PROPERTY.—Sub-
section (c) of section 48 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
paragraph: 
‘‘(5) QUALIFIED
ENERGY
STORAGE
PROP-
ERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
energy storage property’ means property— 
‘‘(i) which is directly connected to the 
electrical grid, and 
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‘‘(ii) which is designed to receive elec-
trical energy, to store such energy, and— 
‘‘(I) to convert such energy to 
electricity and deliver such electricity 
for sale, or 
‘‘(II) to use such energy to pro-
vide improved reliability or economic 
benefits to the grid. 
Such term may include hydroelectric pumped 
storage and compressed air energy storage, re-
generative fuel cells, batteries, superconducting 
magnetic energy storage, flywheels, thermal en-
ergy storage systems, and hydrogen storage, or 
combination thereof, or any other technologies 
as the Secretary, in consultation with the Sec-
retary of Energy, shall determine. 
‘‘(B) 
MINIMUM
CAPACITY.—The 
term 
‘qualified energy storage property’ shall not in-
clude any property unless such property in ag-
gregate has the ability to sustain a power rat-
ing of at least 1 megawatt for a minimum of 
1 hour. 
‘‘(C) ELECTRICAL GRID.—The term ‘elec-
trical grid’ means the system of generators, 
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transmission lines, and distribution facilities 
which— 
‘‘(i) are under the jurisdiction of the 
Federal Energy Regulatory Commission or 
State public utility commissions, or 
‘‘(ii) are owned by— 
‘‘(I) the Federal government, 
‘‘(II) a State or any political sub-
division of a State, 
‘‘(III) an electric cooperative that 
is eligible for financing under the 
Rural Electrification Act of 1936 (7 
U.S.C. 901 et seq.), or 
‘‘(IV) any agency, authority, or 
instrumentality of any one or more of 
the entities described in subclause (I) 
or (II), or any corporation which is 
wholly owned, directly or indirectly, by 
any one or more of such entities. 
‘‘(D) ALLOCATION OF CREDITS.— 
‘‘(i) IN
GENERAL.—In the case of 
qualified energy storage property placed in 
service during the taxable year, the credit 
otherwise determined under subsection (a) 
for such year with respect to such property 
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shall not exceed the amount allocated to 
such project under clause (ii). 
‘‘(ii) NATIONAL LIMITATION AND AL-
LOCATION.—There is a qualified energy 
storage property investment credit limita-
tion of $1,500,000,000. Such limitation 
shall be allocated by the Secretary among 
qualified energy storage property projects 
selected by the Secretary, in consultation 
with the Secretary of Energy, for taxable 
years beginning after the date of the enact-
ment of the STORAGE 2013 Act, except 
that not more than $40,000,000 shall be 
allocated to any project for all such taxable 
years. 
‘‘(iii) SELECTION CRITERIA.—In mak-
ing allocations under clause (ii), the Sec-
retary, in consultation with the Secretary 
of Energy, shall select only those projects 
which have a reasonable expectation of 
commercial viability, select projects rep-
resenting a variety of technologies, applica-
tions, and project sizes, and give priority 
to projects which— 
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‘‘(I) provide the greatest increase 
in reliability or the greatest economic 
benefit, 
‘‘(II) enable the greatest im-
provement in integration of renewable 
resources into the grid, or 
‘‘(III) enable the greatest in-
crease in efficiency in operation of the 
grid. 
‘‘(iv) DEADLINES.— 
‘‘(I) IN GENERAL.—If a project 
which receives an allocation under 
clause (ii) is not placed in service 
within 2 years after the date of such 
allocation, such allocation shall be in-
valid. 
‘‘(II) SPECIAL RULE FOR HYDRO-
ELECTRIC
PUMPED
STORAGE.—Not-
withstanding subclause (I), in the case 
of a hydroelectric pumped storage 
project, if such project has not re-
ceived such permits or licenses as are 
determined necessary by the Sec-
retary, in consultation with the Sec-
retary of Energy, within 3 years after 
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the date of such allocation, begun con-
struction within 5 years after the date 
of such allocation, and been placed in 
service within 8 years after the date 
of such allocation, such allocation 
shall be invalid. 
‘‘(III) SPECIAL RULE FOR COM-
PRESSED
AIR
ENERGY
STORAGE.— 
Notwithstanding subclause (I), in the 
case of a compressed air energy stor-
age project, if such project has not 
begun construction within 3 years 
after the date of the allocation and 
been placed in service within 5 years 
after the date of such allocation, such 
allocation shall be invalid. 
‘‘(IV) EXCEPTIONS.—The Sec-
retary may extend the 2-year period 
in subclause (I) or the periods de-
scribed in subclauses (II) and (III) on 
a project-by-project basis if the Sec-
retary, in consultation with the Sec-
retary of Energy, determines that 
there has been a good faith effort to 
begin construction or to place the 
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project in service, whichever is appli-
cable, and that any delay is caused by 
factors not in the taxpayer’s control. 
‘‘(E) REVIEW AND REDISTRIBUTION.— 
‘‘(i) REVIEW.—Not later than 4 years 
after the date of the enactment of the 
STORAGE 2013 Act, the Secretary shall 
review the credits allocated under subpara-
graph (D) as of the date of such review. 
‘‘(ii) REDISTRIBUTION.—Upon the re-
view described in clause (i), the Secretary 
may reallocate credits allocated under sub-
paragraph (D) if the Secretary determines 
that— 
‘‘(I) there is an insufficient quan-
tity of qualifying applications for cer-
tification pending at the time of the 
review, or 
‘‘(II) any allocation made under 
subparagraph (D)(ii) has been re-
voked 
pursuant 
to 
subparagraph 
(D)(iv) because the project subject to 
such allocation has been delayed. 
‘‘(F) DISCLOSURE OF ALLOCATIONS.—The 
Secretary shall, upon making an allocation 
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under subparagraph (D)(ii), publicly disclose 
the identity of the applicant, the location of the 
project, and the amount of the credit with re-
spect to such applicant. 
‘‘(G) TERMINATION.—No credit shall be 
allocated under subparagraph (D) for any pe-
riod ending after December 31, 2020.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
SEC. 3. ENERGY STORAGE PROPERTY CONNECTED TO THE 
GRID ELIGIBLE FOR NEW CLEAN RENEWABLE 
ENERGY BONDS. 
(a) IN GENERAL.—Paragraph (1) of section 54C(d) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(1) QUALIFIED RENEWABLE ENERGY FACIL-
ITY.—The term ‘qualified renewable energy facility’ 
means a facility which is— 
‘‘(A)(i) a qualified facility (as determined 
under section 45(d) without regard to para-
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graphs (8) and (10) thereof and to any placed 
in service date), or 
‘‘(ii) a qualified energy storage property 
(as defined in section 48(c)(5)), and 
‘‘(B) owned by a public power provider, a 
governmental body, or a cooperative electric 
company.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to obligations issued after the date 
of the enactment of this Act. 
SEC. 4. ENERGY INVESTMENT CREDIT FOR ONSITE ENERGY 
STORAGE. 
(a) CREDIT
ALLOWED.—Clause (i) of section 
48(a)(2)(A) of the Internal Revenue Code of 1986, as 
amended by this Act, is amended— 
(1) by striking ‘‘and’’ at the end of subclause 
(III), 
(2) by inserting ‘‘and’’ at the end of subclause 
(IV), and 
(3) by adding at the end the following new sub-
clause: 
‘‘(V) qualified onsite energy stor-
age property,’’. 
(b) QUALIFIED ONSITE ENERGY STORAGE PROP-
ERTY.—Subsection (c) of section 48 of the Internal Rev-
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enue Code of 1986, as amended by this Act, is amended 
by adding at the end the following new paragraph: 
‘‘(6) QUALIFIED
ONSITE
ENERGY
STORAGE 
PROPERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
onsite energy storage property’ means property 
which— 
‘‘(i) provides supplemental energy to 
reduce peak energy requirements primarily 
on the same site where the property is lo-
cated, or 
‘‘(ii) is designed and used primarily to 
receive and store, firm, or shape variable 
renewable or off-peak energy and to deliver 
such energy primarily for onsite consump-
tion. 
Such term may include thermal energy storage 
systems and property used to charge plug-in 
and hybrid electric vehicles if such property or 
vehicles are equipped with smart grid equip-
ment or services which control time-of-day 
charging and discharging of such vehicles. Such 
term shall not include any property for which 
any other credit is allowed under this chapter. 
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‘‘(B) 
MINIMUM
CAPACITY.—The 
term 
‘qualified onsite energy storage property’ shall 
not include any property unless such property 
in aggregate— 
‘‘(i) has the ability to store the energy 
equivalent of at least 20 kilowatt hours of 
energy, and 
‘‘(ii) has the ability to have an output 
of the energy equivalent of 4 kilowatts of 
electricity for a period of 5 hours. 
‘‘(C) LIMITATION.—In the case of qualified 
onsite energy storage property placed in service 
during the taxable year, the credit otherwise de-
termined under subsection (a) for such year 
with respect to such property shall not exceed 
$1,000,000.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
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SEC. 5. CREDIT FOR RESIDENTIAL ENERGY STORAGE 
EQUIPMENT. 
(a) CREDIT ALLOWED.—Subsection (a) of section 
25D of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(4), 
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘, and’’, and 
(3) by adding at the end the following new 
paragraph: 
‘‘(6) 30 percent of the qualified residential en-
ergy storage equipment expenditures made by the 
taxpayer during such taxable year, and’’. 
(b) QUALIFIED RESIDENTIAL ENERGY STORAGE 
EQUIPMENT EXPENDITURES.—Section 25D(d) of the In-
ternal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph: 
‘‘(6) QUALIFIED RESIDENTIAL ENERGY STOR-
AGE EQUIPMENT EXPENDITURES.—For purposes of 
this section, the term ‘qualified residential energy 
storage equipment expenditure’ means an expendi-
ture for property— 
‘‘(A) which is installed in or on a dwelling 
unit located in the United States and owned 
and used by the taxpayer as the taxpayer’s 
principal residence (within the meaning of sec-
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tion 121), or on property owned by the tax-
payer on which such a dwelling unit is located, 
‘‘(B) which— 
‘‘(i) provides supplemental energy to 
reduce peak energy requirements primarily 
on the same site where the property is lo-
cated, or 
‘‘(ii) is designed and used primarily to 
receive and store, firm, or shape variable 
renewable or off-peak energy and to deliver 
such energy primarily for onsite consump-
tion, and 
‘‘(C) which— 
‘‘(i) has the ability to store the energy 
equivalent of at least 2 kilowatt hours of 
energy, and 
‘‘(ii) has the ability to have an output 
of the energy equivalent of 500 watts of 
electricity for a period of 4 hours. 
Such term may include thermal energy storage sys-
tems and property used to charge plug-in and hybrid 
electric vehicles if such property or vehicles are 
equipped with smart grid equipment or services 
which control time-of-day charging and discharging 
of such vehicles. Such term shall not include any 
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property for which any other credit is allowed under 
this chapter.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
Æ 
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