S 1091 ISCommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

May 20, 2009CommentsClose CommentsPermalink

Mr. WYDEN introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Storage Technology of Renewable and Green Energy Act of 2009’ or the ‘STORAGE Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. ENERGY INVESTMENT CREDIT FOR ENERGY STORAGE PROPERTY CONNECTED TO THE GRID.

(a) 20 Percent Credit Allowed- Subparagraph (A) of section 48(a)(2) of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(1) by striking ‘and’ at the end of subclause (IV) of clause (i),CommentsClose CommentsPermalink





(2) by striking ‘clause (i)’ in clause (ii) and inserting ‘clause (i) or (ii)’,CommentsClose CommentsPermalink





(3) by redesignating clause (ii) as clause (iii), andCommentsClose CommentsPermalink





(4) by inserting after clause (i) the following new clause:CommentsClose CommentsPermalink





‘(ii) 20 percent in the case of qualified energy storage property, and’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(5) QUALIFIED ENERGY STORAGE PROPERTY-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘qualified energy storage property’ means property--CommentsClose CommentsPermalink





‘(i) which is directly connected to the electrical grid, andCommentsClose CommentsPermalink





‘(ii) which is designed to receive electrical energy, to store such energy, and to convert such energy to electricity and deliver such electricity for sale.CommentsClose CommentsPermalink





Such term may include hydroelectric pumped storage and compressed air energy storage, regenerative fuel cells, batteries, superconducting magnetic energy storage, flywheels, thermal, and hydrogen storage, or combination thereof.CommentsClose CommentsPermalink





‘(B) MINIMUM CAPACITY- The term ‘qualified energy storage property’ shall not include any property unless such property in aggregate--CommentsClose CommentsPermalink





‘(i) has the ability to store at least 2 megawatt hours of energy, andCommentsClose CommentsPermalink





‘(ii) has the ability to have an output of 500 kilowatts of electricity for a period of 4 hours.CommentsClose CommentsPermalink





‘(C) ELECTRICAL GRID- The term ‘electrical grid’ means the system of generators, transmission lines, and distribution facilities which--CommentsClose CommentsPermalink





‘(i) are under the jurisdiction of the Federal Energy Regulatory Commission or State public utility commissions, orCommentsClose CommentsPermalink





‘(ii) are owned by--CommentsClose CommentsPermalink





‘(I) a State or any political subdivision of a State,CommentsClose CommentsPermalink





‘(II) an electric cooperative that receives financing under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) or that sells less than 4,000,000 megawatt hours of electricity per year, orCommentsClose CommentsPermalink





‘(III) 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.’.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(1) QUALIFIED RENEWABLE ENERGY FACILITY- The term ‘qualified renewable energy facility’ means a facility which is--CommentsClose CommentsPermalink





‘(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), orCommentsClose CommentsPermalink





‘(ii) a qualified energy storage property (as defined in section 48(c)(5)), andCommentsClose CommentsPermalink





‘(B) owned by a public power provider, a governmental body, or a cooperative electric company.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to obligations issued after the date of the enactment of this Act.CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) by striking ‘and’ at the end of subclause (III),CommentsClose CommentsPermalink





(2) by inserting ‘and’ at the end of subclause (IV), andCommentsClose CommentsPermalink





(3) by adding at the end the following new subclause:CommentsClose CommentsPermalink





‘(V) qualified onsite energy storage property,’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(6) QUALIFIED ONSITE ENERGY STORAGE PROPERTY-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘qualified onsite energy storage property’ means property which--CommentsClose CommentsPermalink





‘(i) provides supplemental energy to reduce peak energy requirements primarily on the same site where the storage is located, orCommentsClose CommentsPermalink





‘(ii) is designed and used primarily to receive and store intermittent renewable energy generated onsite and to deliver such energy primarily for onsite consumption.CommentsClose CommentsPermalink





Such term may include property used to charge plug-in and hybrid electric vehicles if such vehicles are equipped with smart grid 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.CommentsClose CommentsPermalink





‘(B) MINIMUM CAPACITY- The term ‘qualified onsite energy storage property’ shall not include any property unless such property in aggregate--CommentsClose CommentsPermalink





‘(i) has the ability to store the energy equivalent of at least 20 kilowatt hours of energy, andCommentsClose CommentsPermalink





‘(ii) has the ability to have an output of the energy equivalent of 5 kilowatts of electricity for a period of 4 hours.’.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink

SEC. 5. CREDIT FOR RESIDENTIAL ENERGY STORAGE EQUIPMENT.

(a) Credit Allowed- Subsection (a) of section 25C of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(1) by striking ‘and’ at the end of paragraph (1),CommentsClose CommentsPermalink





(2) by redesignating paragraph (2) as paragraph (3), andCommentsClose CommentsPermalink





(3) by inserting after paragraph (1) the following new paragraph:CommentsClose CommentsPermalink





‘(2) 30 percent of the amount paid or incurred by the taxpayer for qualified residential energy storage equipment installed during such taxable year, and’.CommentsClose CommentsPermalink





(b) Qualified Residential Energy Storage Equipment-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 25C of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(A) by redesignating subsections (e), (f), and (g) as subsections (f), (g), and (h), respectively, andCommentsClose CommentsPermalink





(B) by inserting after subsection (d) the following new subsection:CommentsClose CommentsPermalink





‘(d) Qualified Residential Energy Storage Equipment- For purposes of this section, the term ‘qualified residential energy storage equipment’ means property--CommentsClose CommentsPermalink





‘(1) 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, andCommentsClose CommentsPermalink





‘(2) which--CommentsClose CommentsPermalink





‘(A) provides supplemental energy to reduce peak energy requirements primarily on the same site where the storage is located, orCommentsClose CommentsPermalink





‘(B) is designed and used primarily to receive and store intermittent renewable energy generated onsite and to deliver such energy primarily for onsite consumption.CommentsClose CommentsPermalink





Such term may include property used to charge plug-in and hybrid electric vehicles if such vehicles are equipped with smart grid 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.’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Section 1016(a)(33) of such Code is amended by striking ‘section 25C(f)’ and inserting ‘section 25C(g)’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink