[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4096 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 4096
To amend the Internal Revenue Code of 1986 to provide for an energy
investment credit for energy storage property connected to the grid,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 28, 2012
Mr. Gibson (for himself and Mr. Thompson of California) 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 an energy
investment credit for energy storage property connected to the grid,
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 ``Storage Technology for Renewable and
Green Energy Act of 2012'' or the ``STORAGE 2012 Act''.
SEC. 2. ENERGY INVESTMENT CREDIT FOR ENERGY STORAGE PROPERTY CONNECTED
TO THE GRID.
(a) Up to 20 Percent Credit Allowed.--Subparagraph (A) of section
48(a)(2) of the Internal Revenue Code of 1986 is amended--
(1) by striking ``and'' at the end of subclause (IV) of
clause (i),
(2) by striking ``clause (i)'' in clause (ii) and inserting
``clause (i) or (ii)'',
(3) by redesignating clause (ii) as clause (iii), and
(4) by inserting after clause (i) the following new clause:
``(ii) as provided in subsection (c)(5)(D),
up to 20 percent in the case of qualified
energy storage property, and''.
(b) Qualified Energy Storage Property.--Subsection (c) of section
48 of the Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(5) Qualified energy storage property.--
``(A) In general.--The term `qualified energy
storage property' means property--
``(i) which is directly connected to the
electrical grid, and
``(ii) which is designed to receive
electrical energy, to store such energy, and--
``(I) to convert such energy to
electricity and deliver such
electricity for sale, or
``(II) to use such energy to
provide improved reliability or
economic benefits to the grid.
Such term may include hydroelectric pumped storage and
compressed air energy storage, regenerative fuel cells,
batteries, superconducting magnetic energy storage,
flywheels, thermal energy storage systems, and hydrogen
storage, or combination thereof, or any other
technologies as the Secretary, in consultation with the
Secretary of Energy, shall determine.
``(B) Minimum capacity.--The term `qualified energy
storage property' shall not include any property unless
such property in aggregate has the ability to sustain a
power rating of at least 1 megawatt for a minimum of 1
hour.
``(C) Electrical grid.--The term `electrical grid'
means the system of generators, transmission lines, and
distribution facilities which--
``(i) are under the jurisdiction of the
Federal Energy Regulatory Commission or State
public utility commissions, or
``(ii) are owned by--
``(I) the Federal government,
``(II) a State or any political
subdivision of a State,
``(III) an electric cooperative
that is eligible for financing under
the Rural Electrification Act of 1936
(7 U.S.C. 901 et seq.), or
``(IV) any agency, authority, or
instrumentality of any one or more of
the entities described in subclause (I)
or (II), or any corporation which is
wholly owned, directly or indirectly,
by any one or more of such entities.
``(D) Allocation of credits.--
``(i) In general.--In the case of qualified
energy storage property placed in service
during the taxable year, the credit otherwise
determined under subsection (a) for such year
with respect to such property shall not exceed
the amount allocated to such project under
clause (ii).
``(ii) National limitation and
allocation.--There is a qualified energy
storage property investment credit limitation
of $1,500,000,000. Such limitation shall be
allocated by the Secretary among qualified
energy storage property projects selected by
the Secretary, in consultation with the
Secretary of Energy, for taxable years
beginning after the date of the enactment of
the STORAGE 2012 Act, except that not more than
$40,000,000 shall be allocated to any project
for all such taxable years.
``(iii) Selection criteria.--In making
allocations under clause (ii), the Secretary,
in consultation with the Secretary of Energy,
shall select only those projects which have a
reasonable expectation of commercial viability,
select projects representing a variety of
technologies, applications, and project sizes,
and give priority to projects which--
``(I) provide the greatest increase
in reliability or the greatest economic
benefit,
``(II) enable the greatest
improvement in integration of renewable
resources into the grid, or
``(III) enable the greatest
increase in efficiency in operation of
the grid.
``(iv) Deadlines.--
``(I) In general.--If a project
which receives an allocation under
clause (ii) is not placed in service
within 2 years after the date of such
allocation, such allocation shall be
invalid.
``(II) Special rule for
hydroelectric pumped storage.--
Notwithstanding subclause (I), in the
case of a hydroelectric pumped storage
project, if such project has not
received such permits or licenses as
are determined necessary by the
Secretary, in consultation with the
Secretary of Energy, within 3 years
after the date of such allocation,
begun construction within 5 years after
the date of such allocation, and been
placed in service within 8 years after
the date of such allocation, such
allocation shall be invalid.
``(III) Special rule for compressed
air energy storage.--Notwithstanding
subclause (I), in the case of a
compressed air energy storage project,
if such project has not begun
construction within 3 years after the
date of the allocation and been placed
in service within 5 years after the
date of such allocation, such
allocation shall be invalid.
``(IV) Exceptions.--The Secretary
may extend the 2-year period in
subclause (I) or the periods described
in subclauses (II) and (III) on a
project-by-project basis if the
Secretary, in consultation with the
Secretary of Energy, determines that
there has been a good faith effort to
begin construction or to place the
project in service, whichever is
applicable, and that any delay is
caused by factors not in the taxpayer's
control.
``(E) Review and redistribution.--
``(i) Review.--Not later than 4 years after
the date of the enactment of the STORAGE 2012
Act, the Secretary shall review the credits
allocated under subparagraph (D) as of the date
of such review.
``(ii) Redistribution.--Upon the review
described in clause (i), the Secretary may
reallocate credits allocated under subparagraph
(D) if the Secretary determines that--
``(I) there is an insufficient
quantity of qualifying applications for
certification pending at the time of
the review, or
``(II) any allocation made under
subparagraph (D)(ii) has been revoked
pursuant to subparagraph (D)(iv)
because the project subject to such
allocation has been delayed.
``(F) Disclosure of allocations.--The Secretary
shall, upon making an allocation under subparagraph
(D)(ii), publicly disclose the identity of the
applicant, the location of the project, and the amount
of the credit with respect to such applicant.
``(G) Termination.--No credit shall be allocated
under subparagraph (D) for any period ending after
December 31, 2020.''.
(c) 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. 3. ENERGY STORAGE PROPERTY CONNECTED TO THE GRID ELIGIBLE FOR NEW
CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Paragraph (1) of section 54C(d) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(1) Qualified renewable energy facility.--The term
`qualified renewable energy facility' means a facility which
is--
``(A)(i) a qualified facility (as determined under
section 45(d) without regard to paragraphs (8) and (10)
thereof and to any placed in service date), or
``(ii) a qualified energy storage property (as
defined in section 48(c)(5)), and
``(B) owned by a public power provider, a
governmental body, or a cooperative electric
company.''.
(b) Effective Date.--The amendment made by this section shall apply
to obligations issued after the date of the enactment of this Act.
SEC. 4. ENERGY INVESTMENT CREDIT FOR ONSITE ENERGY STORAGE.
(a) Credit Allowed.--Clause (i) of section 48(a)(2)(A) of the
Internal Revenue Code of 1986, as amended by this Act, is amended--
(1) by striking ``and'' at the end of subclause (III),
(2) by inserting ``and'' at the end of subclause (IV), and
(3) by adding at the end the following new subclause:
``(V) qualified onsite energy
storage property,''.
(b) Qualified Onsite Energy Storage Property.--Subsection (c) of
section 48 of the Internal Revenue Code of 1986, as amended by this
Act, is amended by adding at the end the following new paragraph:
``(6) Qualified onsite energy storage property.--
``(A) In general.--The term `qualified onsite
energy storage property' means property which--
``(i) provides supplemental energy to
reduce peak energy requirements primarily on
the same site where the property is located, or
``(ii) is designed and used primarily to
receive and store, firm, or shape variable
renewable or off-peak energy and to deliver
such energy primarily for onsite consumption.
Such term may include thermal energy storage systems
and property used to charge plug-in and hybrid electric
vehicles if such property or vehicles are equipped with
smart grid equipment or services which control time-of-
day charging and discharging of such vehicles. Such
term shall not include any property for which any other
credit is allowed under this chapter.
``(B) Minimum capacity.--The term `qualified onsite
energy storage property' shall not include any property
unless such property in aggregate--
``(i) has the ability to store the energy
equivalent of at least 20 kilowatt hours of
energy, and
``(ii) has the ability to have an output of
the energy equivalent of 4 kilowatts of
electricity for a period of 5 hours.
``(C) Limitation.--In the case of qualified onsite
energy storage property placed in service during the
taxable year, the credit otherwise determined under
subsection (a) for such year with respect to such
property shall not exceed $1,000,000.''.
(c) 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. 5. CREDIT FOR RESIDENTIAL ENERGY STORAGE EQUIPMENT.
(a) Credit Allowed.--Subsection (a) of section 25D of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``and'' at the end of paragraph (4),
(2) by striking the period at the end of paragraph (5) and
inserting ``, and'', and
(3) by adding at the end the following new paragraph:
``(6) 30 percent of the qualified residential energy
storage equipment expenditures made by the taxpayer during such
taxable year, and''.
(b) Qualified Residential Energy Storage Equipment Expenditures.--
Section 25D(d) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new paragraph:
``(6) Qualified residential energy storage equipment
expenditures.--For purposes of this section, the term
`qualified residential energy storage equipment expenditure'
means an expenditure for property--
``(A) which is installed in or on a dwelling unit
located in the United States and owned and used by the
taxpayer as the taxpayer's principal residence (within
the meaning of section 121), or on property owned by
the taxpayer on which such a dwelling unit is located,
``(B) which--
``(i) provides supplemental energy to
reduce peak energy requirements primarily on
the same site where the property is located, or
``(ii) is designed and used primarily to
receive and store, firm, or shape variable
renewable or off-peak energy and to deliver
such energy primarily for onsite consumption,
and
``(C) which--
``(i) has the ability to store the energy
equivalent of at least 2 kilowatt hours of
energy, and
``(ii) has the ability to have an output of
the energy equivalent of 500 watts of
electricity for a period of 4 hours.
Such term may include thermal energy storage systems and
property used to charge plug-in and hybrid electric vehicles if
such property or vehicles are equipped with smart grid
equipment or services which control time-of-day charging and
discharging of such vehicles. Such term shall not include any
property for which any other credit is allowed under this
chapter.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
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