Electric Power Infrastructure Improvement Act

II 116TH CONGRESS 1ST SESSION S. 3107 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 DECEMBER 19, 2019 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 20:15 Dec 30, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3107.IS S3107 lotter on DSKBCFDHB2PROD with BILLS 2 •S 3107 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.— 5 ‘‘(1) IN GENERAL.—For purposes of section 46, 6 the qualifying electric power transmission line credit 7 for any taxable year is an amount equal to the appli- 8 cable percentage of the qualified investment for such 9 taxable year with respect to any qualifying electric 10 power transmission line property of the taxpayer. 11 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 12 of paragraph (1), the applicable percentage shall be 13 equal to— 14 ‘‘(A) in the case of any qualifying electric 15 power transmission line property relating to an 16 overhead transmission facility, 15 percent, and 17 ‘‘(B) in the case of any qualifying electric 18 power transmission line property relating to an 19 underground or submarine transmission facility, 20 25 percent. 21 ‘‘(b) QUALIFYING INVESTMENT.— 22 ‘‘(1) IN GENERAL.—For purposes of subsection 23 (a), the qualified investment for any taxable year is 24 the basis of any qualifying electric power trans- 25 VerDate Sep 11 2014 21:02 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3107.IS S3107 lotter on DSKBCFDHB2PROD with BILLS 3 •S 3107 IS mission line property placed in service by the tax- 1 payer during such taxable year. 2 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI- 3 TURES RULES MADE APPLICABLE.—Rules similar to 4 the rules of subsections (c)(4) and (d) of section 46 5 (as in effect on the day before the enactment of the 6 Revenue Reconciliation Act of 1990) shall apply for 7 purposes of this section. 8 ‘‘(c) QUALIFYING ELECTRIC POWER TRANSMISSION 9 LINE PROPERTY.—The term ‘qualifying electric power 10 transmission line property’ means— 11 ‘‘(1) any overhead, submarine, or underground 12 transmission facility which— 13 ‘‘(A) is capable of transmitting electricity 14 at a voltage of not less than 345 kilovolts, 15 ‘‘(B) has a transmission capacity of not 16 less than 1,000 megawatts, 17 ‘‘(C) is an alternating current or direct 18 current transmission line, and 19 ‘‘(D) delivers power produced in either a 20 rural area or offshore, and 21 ‘‘(2) any conductors or cables, towers, 22 insulators, reactors, capacitors, circuit breakers, 23 static VAR compensators, static synchronous com- 24 pensators, power converters, transformers, syn- 25 VerDate Sep 11 2014 21:02 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3107.IS S3107 lotter on DSKBCFDHB2PROD with BILLS 4 •S 3107 IS chronous condensers, braking resistors, and any an- 1 cillary facilities and equipment necessary for the 2 proper operation of the facility described in para- 3 graph (1). 4 ‘‘(d) TERMINATION.—This section shall not apply to 5 any property placed in service after December 31, 2029.’’. 6 (b) CONFORMING AMENDMENTS.— 7 (1) Section 46 of the Internal Revenue Code of 8 1986 is amended— 9 (A) by striking ‘‘and’’ at the end of para- 10 graph (5), 11 (B) by striking the period at the end of 12 paragraph (6) and inserting ‘‘, and’’, and 13 (C) by adding at the end the following new 14 paragraph: 15 ‘‘(7) the qualifying electric power transmission 16 line credit.’’. 17 (2) Section 49(a)(1)(C) of such Code is amend- 18 ed— 19 (A) by striking ‘‘and’’ at the end of clause 20 (iv), 21 (B) by striking the period at the end of 22 clause (v) and inserting ‘‘, and’’, and 23 (C) by adding at the end the following new 24 clause: 25 VerDate Sep 11 2014 21:02 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3107.IS S3107 lotter on DSKBCFDHB2PROD with BILLS 5 •S 3107 IS ‘‘(vi) the basis of any qualifying elec- 1 tric power transmission line property under 2 section 48D.’’. 3 (3) The table of sections for subpart E of part 4 IV of subchapter A of chapter 1 of such Code is 5 amended by inserting after the item relating to sec- 6 tion 48C the following new item: 7 ‘‘Sec. 48D. Qualifying electric power transmission line credit.’’. (c) EFFECTIVE DATE.—The amendments made by 8 this section shall apply to property placed in service after 9 December 31, 2019. 10 Æ VerDate Sep 11 2014 21:02 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S3107.IS S3107 lotter on DSKBCFDHB2PROD with BILLS