Energy Storage Tax Incentive and Deployment Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 1684 To amend the Internal Revenue Code of 1986 to provide tax credits for energy storage technologies, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 9, 2021 Mr. MICHAEL F. DOYLE of Pennsylvania (for himself, Mr. BUCHANAN, and Mr. BLUMENAUER) 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 tax credits for energy storage technologies, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Energy Storage Tax 4 Incentive and Deployment Act of 2021’’. 5 SEC. 2. ENERGY CREDIT FOR ENERGY STORAGE TECH- 6 NOLOGIES. 7 (a) IN GENERAL.—Subclause (II) of section 8 48(a)(2)(A)(i) of the Internal Revenue Code of 1986 is 9 VerDate Sep 11 2014 02:19 Apr 28, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1684.IH H1684 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 1684 IH amended by striking ‘‘paragraph (3)(A)(i)’’ and inserting 1 ‘‘clause (i) or (ix) of paragraph (3)(A)’’. 2 (b) ENERGY STORAGE TECHNOLOGIES.—Subpara- 3 graph (A) of section 48(a)(3) of the Internal Revenue 4 Code of 1986 is amended by striking ‘‘or’’ at the end of 5 clause (vii), by adding ‘‘or’’ at the end of clause (viii), and 6 by adding at the end the following new clause: 7 ‘‘(ix) equipment which receives, stores, 8 and delivers energy using batteries, com- 9 pressed air, pumped hydropower, hydrogen 10 storage (including electrolysis), thermal en- 11 ergy storage, regenerative fuel cells, fly- 12 wheels, capacitors, superconducting mag- 13 nets, or other technologies identified by the 14 Secretary in consultation with the Sec- 15 retary of Energy, and which has a capacity 16 of not less than 5 kilowatt hours,’’. 17 (c) PHASEOUT OF CREDIT.—Paragraph (6) of sec- 18 tion 48(a) of the Internal Revenue Code of 1986 is amend- 19 ed— 20 (1) by striking ‘‘ENERGY’’ in the heading and 21 inserting ‘‘AND ENERGY STORAGE’’; and 22 (2) by striking ‘‘paragraph (3)(A)(i)’’ both 23 places it appears and inserting ‘‘clause (i) or (ix) of 24 paragraph (3)(A)’’. 25 VerDate Sep 11 2014 02:19 Apr 28, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1684.IH H1684 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 1684 IH (d) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to property placed in service after 2 December 31, 2020. 3 SEC. 3. RESIDENTIAL ENERGY EFFICIENT PROPERTY 4 CREDIT FOR BATTERY STORAGE TECH- 5 NOLOGY. 6 (a) IN GENERAL.—Subsection (a) of section 25D of 7 the Internal Revenue Code of 1986 is amended— 8 (1) by striking ‘‘and’’ at the end of paragraph 9 (5); and 10 (2) by adding at the end the following new 11 paragraph: 12 ‘‘(7) the qualified battery storage technology ex- 13 penditures,’’. 14 (b) QUALIFIED BATTERY STORAGE TECHNOLOGY 15 EXPENDITURE.—Subsection (d) of section 25D of the In- 16 ternal Revenue Code of 1986 is amended by adding at the 17 end the following new paragraph: 18 ‘‘(7) QUALIFIED BATTERY STORAGE TECH- 19 NOLOGY EXPENDITURE.—The term ‘qualified bat- 20 tery storage technology expenditure’ means an ex- 21 penditure for battery storage technology which— 22 ‘‘(A) is installed on or in connection with 23 a dwelling unit located in the United States and 24 used as a residence by the taxpayer, and 25 VerDate Sep 11 2014 02:19 Apr 28, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1684.IH H1684 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 1684 IH ‘‘(B) has a capacity of not less than 3 kilo- 1 watt hours.’’. 2 (c) EFFECTIVE DATE.—The amendments made by 3 this section shall apply to expenditures paid or incurred 4 in taxable years beginning after December 31, 2020. 5 Æ VerDate Sep 11 2014 02:19 Apr 28, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H1684.IH H1684 kjohnson on DSK79L0C42PROD with BILLS