I 
116TH CONGRESS 
2D SESSION 
H. R. 8530 
To amend the Internal Revenue Code of 1986 to provide for energy 
opportunity zones. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 6, 2020 
Mr. CARBAJAL (for himself and Mr. LOWENTHAL) 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. 
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 ‘‘Energy Opportunity 
Zones Act of 2020’’. 
SEC. 2. OPPORTUNITY ZONES. 
(a) IN GENERAL.—Chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting before sub-
chapter Z the following new subchapter: 
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‘‘Subchapter Y—Energy Opportunity Zones 
‘‘Sec. 1400Y–1. Energy opportunity zones. 
‘‘SEC. 1400Y–1. ENERGY OPPORTUNITY ZONES. 
‘‘(a) PRODUCTION TAX CREDIT.—In the case of a 
qualified energy opportunity zone facility, section 45 shall 
be administered as if— 
‘‘(1) subsection (b)(5) did not apply, 
‘‘(2) ‘2050’ were substituted for ‘2021’ in sub-
section (d)(1), and 
‘‘(3) ‘2050’ were substituted for ‘2021’ each 
place such date appears in paragraphs (2)(A), 
(3)(A)(i), (4)(B), (6), (7), (9), and (11)(B) of sub-
section (d). 
‘‘(b) INVESTMENT TAX CREDIT.—In the case of 
qualified energy opportunity zone property, section 48 
shall be administered as if— 
‘‘(1) ‘2050’ were substituted for ‘2022’ in para-
graphs (2)(A)(i)(II), (3)(A)(ii), and (3)(A)(vii) of 
subsection (a), 
‘‘(2) ‘2050’ were substituted for ‘2021’ in sub-
section (a)(5)(C)(ii), 
‘‘(3) paragraphs (5)(E), (6), and (7) of sub-
section (a) did not apply, 
‘‘(4) paragraphs (1)(D) and (2)(D) of sub-
section (c) did not apply, 
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‘‘(5) ‘2050’ were substituted for ‘2022’ in sub-
section (c)(3)(A)(iv), and 
‘‘(6) subsection (c)(4)(C) did not apply. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED ENERGY OPPORTUNITY ZONE 
FACILITY.—The term ‘qualified energy opportunity 
zone facility’ means any facility which is located 
within an energy opportunity zone and the construc-
tion of which was subject to a project labor agree-
ment. 
‘‘(2) QUALIFIED ENERGY OPPORTUNITY ZONE 
PROPERTY.—The term ‘qualified energy opportunity 
zone property’ means any property if— 
‘‘(A) such property is located within an en-
ergy opportunity zone, 
‘‘(B) the construction of such property was 
subject to a project labor agreement, and 
‘‘(C) all laborers and mechanics employed 
by any contractor or subcontractor in the con-
struction of such property were paid wages at 
rates not less than those prevailing on similar 
construction in the locality as determined by 
the Secretary of Labor under subchapter IV of 
chapter 31 of title 40, United States Code 
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(commonly referred to as the ‘‘Davis-Bacon 
Act’’). 
‘‘(3) ENERGY OPPORTUNITY ZONE DEFINED.— 
The term ‘energy opportunity zone’ means— 
‘‘(A) any area which is within 120 miles 
of— 
‘‘(i) a nuclear power plant, or a facil-
ity which utilizes coal to generate elec-
tricity, which (after the date which is 10 
years before the date of the enactment of 
this section) ceases operation, or 
‘‘(ii) a nuclear power plant which is 
scheduled to cease operation not later than 
6 years after the date of the enactment of 
this section, and 
‘‘(B) any other area that can reasonably 
demonstrate how changes in the nuclear or coal 
economy have resulted (or are anticipated to re-
sult) in job losses in such area. 
‘‘(4) PROJECT LABOR AGREEMENT.—The term 
‘project labor agreement’ means a pre-hire collective 
bargaining agreement with one or more labor organi-
zations that establishes the terms and conditions of 
employment for a specific construction project and 
which is an agreement described in section 8(f) of 
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the National Labor Relations Act (26 U.S.C. 
158(f)).’’. 
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 1 of such Code is amended by insert-
ing before the item relating to subchapter Z the following 
new item: 
‘‘SUBCHAPTER Y—ENERGY OPPORTUNITY ZONES’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to property placed in service after the 
date of the enactment of this Act. 
(2) APPLICATION OF PROGRESS EXPENDITURE 
RULES.—So much of the amendments made by this 
section as relate to section 48 of the Internal Rev-
enue Code of 1986 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 CREDIT FOR QUALIFIED OFFSHORE WIND 
FACILITIES AND ENERGY STORAGE. 
(a) IN GENERAL.—Section 48 of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subsection (a)— 
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(A) in paragraph (2)(A)(i)— 
(i) in subclause (II), by striking 
‘‘paragraph 
(3)(A)(i)’’ 
and 
inserting 
‘‘clause (i) or (ix) of paragraph (3)(A)’’, 
and 
(ii) by striking ‘‘and’’ at the end of 
subclause (III), and 
(iii) by adding at the end the fol-
lowing new subclause: 
‘‘(V) 
qualified 
offshore 
wind 
property, and’’, and 
(B) in paragraph (3)(A)— 
(i) in clause (vi), by striking ‘‘or’’ at 
the end, and 
(ii) by adding at the end the following 
new clause: 
‘‘(viii) qualified offshore wind prop-
erty, but only with respect to property the 
construction of which begins before Janu-
ary 1, 2050, or 
‘‘(ix) any equipment if— 
‘‘(I) such equipment receives, 
stores, and delivers energy using bat-
teries, compressed air, pumped hydro-
power, hydrogen storage (including 
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hydrolysis), thermal energy storage, 
regenerative fuel cells, flywheels, ca-
pacitors, superconducting magnets, or 
other technologies identified by the 
Secretary in consultation with the 
Secretary of Energy, 
‘‘(II) such equipment has a ca-
pacity of not less than 5 megawatt 
hours, 
‘‘(III) such equipment is located 
in an energy opportunity zone (as de-
fined in section 1400Y–1), 
‘‘(IV) the construction of such 
equipment was subject to a project 
labor agreement (as defined in section 
1400Y–1), and 
‘‘(V) all laborers and mechanics 
employed by any contractor or sub-
contractor in the construction of such 
equipment were paid wages at rates 
not less than those prevailing on simi-
lar construction in the locality as de-
termined by the Secretary of Labor 
under subchapter IV of chapter 31 of 
title 40, United States Code (com-
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monly referred to as the ‘‘Davis- 
Bacon Act’’).’’, 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’ means an offshore facil-
ity, other than qualified small wind energy 
property, if— 
‘‘(i) such facility uses wind to produce 
electricity, 
‘‘(ii) such facility is located not far-
ther than 50 miles from the boundary of 
an energy opportunity zone (as defined in 
section 1400Y–1), 
‘‘(iii) the construction of such facility 
was subject to a project labor agreement 
(as defined in section 1400Y–1), and 
‘‘(iv) all laborers and mechanics em-
ployed by any contractor or subcontractor 
in the construction of such facility were 
paid wages at rates not less than those 
prevailing on similar construction in the lo-
cality as determined by the Secretary of 
Labor under subchapter IV of chapter 31 
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of title 40, United States Code (commonly 
referred to as the ‘‘Davis-Bacon Act’’). 
‘‘(B) OFFSHORE
FACILITY.—The term 
‘offshore facility’ means any facility located in 
the inland navigable waters of the United 
States, including the Great Lakes, or in the 
coastal waters of the United States, including 
the territorial seas of the United States, the ex-
clusive economic zone of the United States, and 
the outer Continental Shelf of the United 
States.’’. 
(b) 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. 4. IMPROVEMENTS TO CREDIT FOR NONBUSINESS EN-
ERGY PROPERTY. 
(a) EXTENSION OF CREDIT.— 
(1) IN GENERAL.—Section 25C(g)(2) of the In-
ternal Revenue Code of 1986 is amended by striking 
‘‘December 31, 2020’’ and inserting ‘‘December 31, 
2050’’. 
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(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to property placed in 
service after December 31, 2020. 
(b) OTHER IMPROVEMENTS.— 
(1) IN GENERAL.—Section 25C of the Internal 
Revenue Code of 1986 is amended— 
(A) in subsection (a)(1), by striking ‘‘10 
percent’’ and inserting ‘‘15 percent’’, 
(B) in subsection (b)— 
(i) in paragraph (1)— 
(I) by striking ‘‘$500’’ and in-
serting ‘‘$1,200’’, and 
(II) by striking ‘‘December 31, 
2005’’ and inserting ‘‘December 31, 
2019’’, and 
(ii) by striking paragraphs (2) and (3) 
and inserting the following: 
‘‘(2) LIMITATION ON INSULATION MATERIAL OR 
SYSTEM.—In the case of amounts paid or incurred 
for components described in subsection (c)(3)(A) by 
any taxpayer for any taxable year, the credit allowed 
under this section with respect to such amounts for 
such year shall not exceed the excess (if any) of 
$600 over the aggregate credits allowed under this 
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section with respect to such amounts for all prior 
taxable years ending after December 31, 2019. 
‘‘(3) LIMITATION ON WINDOWS.— 
‘‘(A) IN GENERAL.— 
‘‘(i) 
ENERGY
STAR
MOST
EFFI-
CIENT.—In the case of amounts paid or in-
curred by any taxpayer for any taxable 
year for components described in sub-
section (c)(3)(B) which meet the most effi-
cient certification under applicable Energy 
Star program requirements, the credit al-
lowed under this section with respect to 
such amounts for such year shall not ex-
ceed the excess (if any) of $600 over the 
aggregate credits allowed under this sec-
tion with respect to such amounts for all 
prior taxable years ending after December 
31, 2019. 
‘‘(ii) ENERGY STAR.—In the case of 
amounts paid or incurred by any taxpayer 
for any taxable year for components de-
scribed in subsection (c)(3)(B) which do 
not meet the most efficient certification 
under applicable Energy Star program re-
quirements, the credit allowed under this 
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section with respect to such amounts for 
such year shall not exceed the excess (if 
any) of $200 over the aggregate credits al-
lowed under this section with respect to 
such amounts for all prior taxable years 
ending after December 31, 2019. 
‘‘(B) ELECTION.— 
‘‘(i) IN
GENERAL.—For purposes of 
any amounts paid or incurred by any tax-
payer for components described in sub-
section (c)(3)(B), the credit allowed under 
this section shall only be allowed for com-
ponents described in clause (i) of subpara-
graph (A) or clause (ii) of such subpara-
graph, but not both, as elected by the tax-
payer during the first taxable year in 
which such credit is being claimed by the 
taxpayer. 
‘‘(ii) 
IRREVOCABILITY.—The 
Sec-
retary shall, through such rules, regula-
tions, and procedures as are determined 
appropriate, establish procedures for mak-
ing an election under this subparagraph, 
which shall require that— 
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‘‘(I) any election made by the 
taxpayer shall be irrevocable, and 
‘‘(II) such election shall remain 
in effect for all subsequent taxable 
years. 
‘‘(4) LIMITATION ON DOORS.—In the case of 
amounts paid or incurred for components described 
in subsection (c)(3)(C) by any taxpayer for any tax-
able year, the credit allowed under this section with 
respect to such amounts for such year shall not ex-
ceed— 
‘‘(A) the excess (if any) of $500 over the 
aggregate credits allowed under this section 
with respect to such amounts for all prior tax-
able years ending after December 31, 2019, or 
‘‘(B) $250 for each exterior door. 
‘‘(5) LIMITATION
ON
RESIDENTIAL
ENERGY 
PROPERTY
EXPENDITURES.—The amount of the 
credit allowed under this section by reason of sub-
section (a)(2) shall not exceed— 
‘‘(A) in the case of any energy-efficient 
building property— 
‘‘(i) for any item of property described 
in subparagraph (A), (B), or (C) of sub-
section (d)(3), $600, and 
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