I 
111TH CONGRESS 
1ST SESSION H. R. 4210 
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 
DECEMBER 3, 2009 
Mr. THOMPSON of California (for himself and Mr. WU) 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 
of Renewable and Green Energy Act of 2009’’ or the 
‘‘STORAGE Act of 2009’’. 
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SEC. 2. ENERGY INVESTMENT CREDIT FOR ENERGY STOR-
AGE PROPERTY CONNECTED TO THE GRID. 
(a) 20 PERCENT CREDIT ALLOWED.—Subparagraph 
(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) 20 percent in the case of quali-
fied energy storage property, and’’. 
(b) QUALIFIED ENERGY STORAGE PROPERTY.—Sub-
section (c) of section 48 of such Code is amended by add-
ing 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 
‘‘(ii) which is designed to receive elec-
trical energy, to store such energy, and to 
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convert such energy to electricity and de-
liver such electricity for sale. 
Such term may include hydroelectric pumped 
storage and compressed air energy storage, re-
generative fuel cells, batteries, superconducting 
magnetic energy storage, flywheels, thermal, 
and hydrogen storage, or combination thereof. 
‘‘(B) 
MINIMUM
CAPACITY.—The 
term 
‘qualified energy storage property’ shall not in-
clude any property unless such property in ag-
gregate— 
‘‘(i) has the ability to store at least 2 
megawatt hours of energy, and 
‘‘(ii) has the ability to have an output 
of 500 kilowatts of electricity for a period 
of 4 hours. 
‘‘(C) ELECTRICAL GRID.—The term ‘elec-
trical grid’ means the system of generators, 
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— 
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‘‘(I) a State or any political sub-
division of a State, 
‘‘(II) an electric cooperative that 
receives financing under the Rural 
Electrification Act of 1936 (7 U.S.C. 
901 et seq.) or that sells less than 
4,000,000 megawatt hours of elec-
tricity per year, or 
‘‘(III) 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.’’. 
(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 such Code (as in effect on the day before 
the date of the enactment of the Revenue Reconciliation 
Act of 1990). 
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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-
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— 
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(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 such Code, 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 storage is lo-
cated, or 
‘‘(ii) is designed and used primarily to 
receive and store intermittent renewable 
energy generated onsite and to deliver such 
energy primarily for onsite consumption. 
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Such term may include property used to charge 
plug-in and hybrid electric vehicles if such vehi-
cles are equipped with smart grid 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. 
‘‘(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 5 kilowatts of 
electricity for a period of 4 hours.’’. 
(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 such Code (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 
25C of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(1), 
(2) by redesignating paragraph (2) as para-
graph (3), and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) 30 percent of the amount paid or incurred 
by the taxpayer for qualified residential energy stor-
age equipment installed during such taxable year, 
and’’. 
(b) QUALIFIED RESIDENTIAL ENERGY STORAGE 
EQUIPMENT.— 
(1) IN GENERAL.—Section 25C of such Code is 
amended— 
(A) by redesignating subsections (e), (f), 
and (g) as subsections (f), (g), and (h), respec-
tively, and 
(B) by inserting after subsection (d) the 
following new subsection: 
‘‘(d) QUALIFIED RESIDENTIAL ENERGY STORAGE 
EQUIPMENT.—For purposes of this section, the term 
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‘qualified residential energy storage equipment’ means 
property— 
‘‘(1) 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 section 121), or on property 
owned by the taxpayer on which such a dwelling unit 
is located, and 
‘‘(2) which— 
‘‘(A) provides supplemental energy to re-
duce peak energy requirements primarily on the 
same site where the storage is located, or 
‘‘(B) is designed and used primarily to re-
ceive and store intermittent renewable energy 
generated onsite and to deliver such energy pri-
marily for onsite consumption. 
Such term may include property used to charge plug-in 
and hybrid electric vehicles if such vehicles are equipped 
with smart grid services which control time-of-day charg-
ing and discharging of such vehicles. Such term shall not 
include any property for which any other credit is allowed 
under this chapter.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
1016(a)(33) of such Code is amended by striking 
‘‘section 25C(f)’’ and inserting ‘‘section 25C(g)’’. 
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(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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