Incentivizing New and Valuable Energy Storage Technology (INVEST) Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 5409 To amend the Internal Revenue Code to provide tax credits for energy storage technology, and for other purposes. IN THE HOUSE OF REPRESENTATIVES DECEMBER 12, 2019 Mr. CURTIS introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code to provide tax credits for energy storage technology, 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 ‘‘Incentivizing New and 4 Valuable Energy Storage Technology (INVEST) Act of 5 2019’’. 6 SEC. 2. ENERGY CREDIT FOR ENERGY STORAGE TECH- 7 NOLOGIES. 8 (a) IN GENERAL.—Subclause (II) of section 9 48(a)(2)(A)(i) of the Internal Revenue Code of 1986 is 10 VerDate Sep 11 2014 15:52 Dec 14, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5409.IH H5409 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 5409 IH amended by striking ‘‘paragraph (3)(A)(i)’’ and inserting 1 ‘‘clause (i) or (viii) 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 (vi), by adding ‘‘or’’ at the end of clause (vii), and 6 by adding at the end the following new clause: 7 ‘‘(viii) equipment which receives, 8 stores, and delivers energy using batteries, 9 compressed air, pumped hydropower, hy- 10 drogen storage (including hydrolysis), ther- 11 mal energy storage, regenerative fuel cells, 12 flywheels, capacitors, superconducting 13 magnets, or other technologies identified 14 by the Secretary in consultation with the 15 Secretary of Energy, and which has a ca- 16 pacity 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 (viii) 24 of paragraph (3)(A)’’. 25 VerDate Sep 11 2014 15:52 Dec 14, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5409.IH H5409 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 5409 IH (d) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to property placed in service after 2 December 31, 2018. 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 by striking 8 ‘‘and’’ at the end of paragraph (4), by inserting ‘‘and’’ 9 after the comma at the end of paragraph (5), and by add- 10 ing at the end the following new paragraph: 11 ‘‘(6) the qualified battery storage technology ex- 12 penditures,’’. 13 (b) QUALIFIED BATTERY STORAGE TECHNOLOGY 14 EXPENDITURE.—Subsection (d) of section 25D of the In- 15 ternal Revenue Code of 1986 is amended by adding at the 16 end the following new paragraph: 17 ‘‘(6) QUALIFIED BATTERY STORAGE TECH- 18 NOLOGY EXPENDITURE.—The term ‘qualified bat- 19 tery storage technology expenditure’ means an ex- 20 penditure for battery storage technology which— 21 ‘‘(A) is installed on or in connection with 22 a dwelling unit located in the United States and 23 used as a residence by the taxpayer, and 24 VerDate Sep 11 2014 15:52 Dec 14, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5409.IH H5409 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 5409 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, 2018. 5 SEC. 4. PUBLIC UTILITY PROPERTY. 6 (a) IN GENERAL.—Paragraph (2) of section 50(d) of 7 the Internal Revenue Code of 1986 is amended— 8 (1) by adding after the first sentence the fol- 9 lowing new sentence: ‘‘At the election of a taxpayer, 10 this paragraph shall not apply to energy property 11 described in clause (viii) of section 48(a)(3)(A) that 12 is placed in service by the taxpayer after December 13 31, 2018, provided—’’; and 14 (2) by adding the following new subparagraphs: 15 ‘‘(A) no election under this paragraph shall 16 be permitted if the making of such election is 17 prohibited by, or required by, a State or polit- 18 ical subdivision thereof, by any agency or in- 19 strumentality of the United States, or by a pub- 20 lic service or public utility commission or other 21 similar body of any State or political subdivi- 22 sion that regulates public utilities as described 23 in section 7701(a)(33)(A), 24 VerDate Sep 11 2014 15:52 Dec 14, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5409.IH H5409 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 5409 IH ‘‘(B) an election under this paragraph 1 shall be made separately with respect to each 2 energy property by the due date (including ex- 3 tensions) of the Federal tax return for the tax- 4 able year in which such property is placed in 5 service by the taxpayer, and once made, may be 6 revoked only with the consent of the Secretary, 7 and 8 ‘‘(C) an election shall not apply with re- 9 spect to any energy property described in such 10 subparagraph if such property has a maximum 11 energy capacity equal to or less than 14 kilo- 12 watt hours.’’. 13 (b) EFFECTIVE DATE.—The amendments made by 14 this section shall apply to property placed in service after 15 December 31, 2018. 16 Æ VerDate Sep 11 2014 15:52 Dec 14, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H5409.IH H5409 pamtmann on DSKBC07HB2PROD with BILLS