Title: Energy Opportunity Zones Act of 2018
Policy area: Taxation

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.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5441 Introduced in House (IH)]

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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 Representatives 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 Revenue Code of 1986 is 
amended by adding at the end the following:

                ``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 subsection 
        (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 subsection 
        (d)(4)(B),
            ``(6) `2050' were substituted for `2017' in paragraphs (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 subsection 
        (d)(11)(B).
    ``(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' were substituted for `2022' in subsection 
        (a)(2)(A)(i)(II),
            ``(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 subsection (c) did 
        not apply,
            ``(6) `2050' were substituted for `2017' in subsection 
        (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 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.

SEC. 3. ENERGY CREDIT FOR QUALIFIED OFFSHORE WIND FACILITIES.

    (a) In General.--Section 48 of the Internal Revenue 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 following 
                        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 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' means an offshore facility, 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 opportunity 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 coastal waters of the United 
                States, including the territorial seas of the United 
                States, the exclusive 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.
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