Energy Storage Tax Incentive and Deployment Act of 2021

Bill: 117-s-627
Sponsor: full_name: Sen. Heinrich, Martin [D-NM]
Introduced: 2021-03-09
Policy area: Taxation
Subjects: Alternative and renewable resources

Business investment and capital

Energy efficiency and conservation

Energy storage, supplies, demand

Income tax credits

Residential rehabilitation and home repair
Latest action: action_date: 2021-03-09
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2021-03-09
action_desc: Introduced in Senate
text: <p><b>Energy Storage Tax Incentive and Deployment Act of 2021</b></p> <p>This bill allows tax credits for (1) energy storage technologies, and (2) battery storage technology. </p> <p>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 electrolysis), 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. </p> <p>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. </p>

tv_txt: II 117th CONGRESS 1st Session S. 627 IN THE SENATE OF THE UNITED STATES March 9, 2021 Mr. Heinrich (for himself, Ms. Collins , Mr. Schatz , Mr. Bennet , Mr. Whitehouse , Ms. Hirono , Ms. Smith , Mr. Reed , Mr. Booker , Mrs. Feinstein , Mr. Van Hollen , and Mr. King ) 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.

1. Short title This Act may be cited as the Energy Storage Tax Incentive and Deployment Act of 2021 . 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 (ix) 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 (vii), by adding or at the end of clause (viii), and by adding at the end the following new clause: (ix) equipment which receives, stores, and delivers energy using batteries, compressed air, pumped hydropower, hydrogen storage (including electrolysis), 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 (ix) of paragraph (3)(A) . (d) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2020. 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— (1) by striking and at the end of paragraph (5), and (2) by adding at the end the following new paragraph: (7) the qualified battery storage technology expenditures, . (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: (7) 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) Effective date The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2020.