Electric Power Infrastructure Improvement Act

II 117TH CONGRESS 1ST SESSION S. 1016 To amend the Internal Revenue Code of 1986 to establish a tax credit for installation of regionally significant electric power transmission lines. IN THE SENATE OF THE UNITED STATES MARCH 25, 2021 Mr. HEINRICH 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 establish a tax credit for installation of regionally significant elec- tric power transmission lines. 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 ‘‘Electric Power Infra- 4 structure Improvement Act’’. 5 SEC. 2. ESTABLISHMENT OF ELECTRIC POWER TRANS- 6 MISSION LINES. 7 (a) IN GENERAL.—Subpart E of part IV of sub- 8 chapter A of chapter 1 of the Internal Revenue Code of 9 VerDate Sep 11 2014 18:17 Apr 20, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1016.IS S1016 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 1016 IS 1986 is amended by inserting after section 48C the fol- 1 lowing new section: 2 ‘‘SEC. 48D. QUALIFYING ELECTRIC POWER TRANSMISSION 3 LINE CREDIT. 4 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec- 5 tion 46, the qualifying electric power transmission line 6 credit for any taxable year is an amount equal to 30 per- 7 cent of the qualified investment for such taxable year with 8 respect to any qualifying electric power transmission line 9 property of the taxpayer. 10 ‘‘(b) QUALIFYING INVESTMENT.— 11 ‘‘(1) IN GENERAL.—For purposes of subsection 12 (a), the qualified investment for any taxable year is 13 the basis of any qualifying electric power trans- 14 mission line property placed in service by the tax- 15 payer during such taxable year. 16 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI- 17 TURES RULES MADE APPLICABLE.—Rules similar to 18 the rules of subsections (c)(4) and (d) of section 46 19 (as in effect on the day before the enactment of the 20 Revenue Reconciliation Act of 1990) shall apply for 21 purposes of this section. 22 ‘‘(c) QUALIFYING ELECTRIC POWER TRANSMISSION 23 LINE PROPERTY.—The term ‘qualifying electric power 24 transmission line property’ means— 25 VerDate Sep 11 2014 18:17 Apr 20, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1016.IS S1016 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 1016 IS ‘‘(1) any overhead, submarine, or underground 1 transmission facility which— 2 ‘‘(A) is capable of transmitting electricity 3 at a voltage of not less than 275 kilovolts, 4 ‘‘(B) has a transmission capacity of not 5 less than 500 megawatts, 6 ‘‘(C) is an alternating current or direct 7 current transmission line, and 8 ‘‘(D) delivers power produced in either a 9 rural area or offshore, and 10 ‘‘(2) any conductors or cables, towers, 11 insulators, reactors, capacitors, circuit breakers, 12 static VAR compensators, static synchronous com- 13 pensators, power converters, transformers, syn- 14 chronous condensers, braking resistors, and any an- 15 cillary facilities and equipment necessary for the 16 proper operation of the facility described in para- 17 graph (1). 18 ‘‘(d) TERMINATION.—This section shall not apply to 19 any property placed in service after December 31, 2031.’’. 20 (b) CONFORMING AMENDMENTS.— 21 (1) Section 46 of the Internal Revenue Code of 22 1986 is amended— 23 (A) by striking ‘‘and’’ at the end of para- 24 graph (5), 25 VerDate Sep 11 2014 18:17 Apr 20, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1016.IS S1016 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 1016 IS (B) by striking the period at the end of 1 paragraph (6) and inserting ‘‘, and’’, and 2 (C) by adding at the end the following new 3 paragraph: 4 ‘‘(7) the qualifying electric power transmission 5 line credit.’’. 6 (2) Section 49(a)(1)(C) of such Code is amend- 7 ed— 8 (A) by striking ‘‘and’’ at the end of clause 9 (iv), 10 (B) by striking the period at the end of 11 clause (v) and inserting ‘‘, and’’, and 12 (C) by adding at the end the following new 13 clause: 14 ‘‘(vi) the basis of any qualifying elec- 15 tric power transmission line property under 16 section 48D.’’. 17 (3) The table of sections for subpart E of part 18 IV of subchapter A of chapter 1 of such Code is 19 amended by inserting after the item relating to sec- 20 tion 48C the following new item: 21 ‘‘Sec. 48D. Qualifying electric power transmission line credit.’’. (c) EFFECTIVE DATE.—The amendments made by 22 this section shall apply to property placed in service after 23 December 31, 2021. 24 Æ VerDate Sep 11 2014 18:17 Apr 20, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1016.IS S1016 pamtmann on DSKBC07HB2PROD with BILLS