Title: Energy Storage Tax Incentive and Deployment Act of 2017
Policy area: Taxation

Summary:
Energy Storage Tax Incentive and Deployment Act of 2017
This bill amends the Internal Revenue Code to allow tax credits for: (1) energy storage technologies, and (2) battery storage technology.
The bill expands the tax credit for investments in energy property to include equipment that: (1) 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 Internal Revenue Service; and (2) has a capacity of at least five kilowatt hours.
The bill also expands the tax credit for residential energy efficient property to include expenditures for battery storage technology that: (1) is installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and (2) has a capacity of at least three kilowatt hours.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1868 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1868

 To amend the Internal Revenue Code of 1986 to provide tax credits for 
          energy storage technologies, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 26, 2017

  Mr. Heinrich (for himself, Mr. Heller, Mr. Schatz, Mr. Franken, Mr. 
    King, Ms. Hirono, Mrs. Feinstein, and Mr. Reed) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide tax credits for 
          energy storage technologies, and for other purposes.

    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 Storage Tax Incentive and 
Deployment Act of 2017''.

SEC. 2. ENERGY CREDIT FOR ENERGY STORAGE TECHNOLOGIES.

    (a) In General.--Subclause (II) of section 48(a)(2)(A)(i) of the 
Internal Revenue Code of 1986 is amended by striking ``paragraph 
(3)(A)(i)'' and inserting ``clause (i) or (viii) of paragraph (3)(A)''.
    (b) Energy Storage Technologies.--Subparagraph (A) of section 
48(a)(3) of the Internal Revenue Code of 1986 is amended by striking 
``or'' at the end of clause (vi), by adding ``or'' at the end of clause 
(vii), and by adding at the end the following new clause:
                            ``(viii) 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 kilowatt hours,''.
    (c) Phaseout of Credit.--Paragraph (6) of section 48(a) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``energy'' in the heading and inserting 
        ``and energy storage''; and
            (2) by striking ``paragraph (3)(A)(i)'' both places it 
        appears and inserting ``clause (i) or (viii) of paragraph 
        (3)(A)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2016.

SEC. 3. RESIDENTIAL ENERGY EFFICIENT PROPERTY CREDIT FOR BATTERY 
              STORAGE TECHNOLOGY.

    (a) In General.--Subsection (a) of section 25D of the Internal 
Revenue Code of 1986 is amended by striking ``and'' at the end of 
paragraph (4), by striking the period at the end of paragraph (5) and 
inserting ``, and'', and by adding at the end the following new 
paragraph:
            ``(6) the applicable percentage of the qualified battery 
        storage technology expenditures made by the taxpayer during 
        such year.''.
    (b) Qualified Battery Storage Technology Expenditure.--Subsection 
(d) of section 25D of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new paragraph:
            ``(6) Qualified battery storage technology expenditure.--
        The term `qualified battery storage technology expenditure' 
        means an expenditure for battery storage technology which--
                    ``(A) is installed on or in connection with a 
                dwelling unit located in the United States and used as 
                a residence by the taxpayer, and
                    ``(B) has a capacity of not less than 3 kilowatt 
                hours.''.
    (c) Applicable Percentage.--Subsection (g) of section 25D of the 
Internal Revenue Code of 1986 is amended by striking ``(1) and (2)'' 
and inserting ``(1), (2), and (6)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
December 31, 2016.
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