I 
115TH CONGRESS 
2D SESSION 
H. R. 5441 
To amend the Internal Revenue Code of 1986 to provide for energy 
opportunity zones. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 9, 2018 
Mr. CARBAJAL 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 2018’’. 
SEC. 2. OPPORTUNITY ZONES. 
(a) IN GENERAL.—Chapter 1 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following: 
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‘‘Subchapter Z—Energy Opportunity Zones 
‘‘SEC. 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’ were substituted for ‘2020’ in sub-
section (d)(1), 
‘‘(3) ‘2050’ were substituted for ‘2017’ each 
place such term appears in subsection (d)(2)(A), 
‘‘(4) ‘2050’ were substituted for ‘2017’ each 
place such term appears in subsection (d)(3)(A)(i), 
‘‘(5) ‘2050’ were substituted for ‘2017’ in sub-
section (d)(4)(B), 
‘‘(6) ‘2050’ were substituted for ‘2017’ in para-
graphs (6) and (7) of subsection (d), 
‘‘(7) ‘2050’ were substituted for ‘2017’ each 
place such term appears in subsection (d)(9), and 
‘‘(8) ‘2050’ were substituted for ‘2017’ in sub-
section (d)(11)(B). 
‘‘(b) INVESTMENT TAX CREDIT.—In the case of en-
ergy property placed in service within an energy oppor-
tunity zone, section 48 shall be administered as if— 
‘‘(1) ‘2050’ were substituted for ‘2022’ in sub-
section (a)(2)(A)(i)(II), 
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‘‘(2) ‘2050’ were substituted for ‘2017’ in 
clauses (ii) and (vii) of subsection (a)(3)(A), 
‘‘(3) ‘2050’ were substituted for ‘2017’ and 
‘2050’ were substituted for ‘2020’ in subsection 
(a)(5)(C)(ii), 
‘‘(4) paragraphs (5)(E) and (6) of subsection 
(a) did not apply, 
‘‘(5) paragraphs (1)(D) and (2)(D) of sub-
section (c) did not apply, 
‘‘(6) ‘2050’ were substituted for ‘2017’ in sub-
section (c)(3)(A)(iv), and 
‘‘(7) subsection (c)(4)(C) did not apply. 
‘‘(c) ENERGY OPPORTUNITY ZONE DEFINED.—For 
the purposes of this section, the term ‘energy opportunity 
zone’ means 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.’’. 
(b) CLERICAL AMENDMENT.—The table of sub-
chapters 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 begin-
ning after the date of the enactment of this Act. 
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SEC. 3. ENERGY CREDIT FOR QUALIFIED OFFSHORE WIND 
FACILITIES. 
(a) IN GENERAL.—Section 48 of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subsection (a)— 
(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)’’, 
(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, 
(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, 2026, or 
‘‘(ix) equipment which receives, stores, 
and delivers energy using batteries, com-
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pressed air, pumped hydropower, hydrogen 
storage (including hydrolysis), thermal en-
ergy storage, regenerative fuel cells, fly-
wheels, capacitors, superconducting mag-
nets, or other technologies identified by the 
Secretary in consultation with the Sec-
retary 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’ means an offshore facil-
ity, other than qualified small wind energy 
property, that— 
‘‘(i) uses wind to produce electricity, 
and 
‘‘(ii) is located not farther than 50 
miles from the boundary of an energy op-
portunity zone (as defined in section 
1400Z–1). 
‘‘(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 
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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 property placed in service after 
December 31, 2016. 
Æ 
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