Grid Resiliency Tax Credit

II 118TH CONGRESS 1ST SESSION S. 1793 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 JUNE 1, 2023 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 ‘‘Grid Resiliency Tax 4 Credit’’. 5 SEC. 2. FINDINGS. 6 Congress finds the following: 7 (1) A robust electric power transmission system 8 is critical to the economic, energy, and national se- 9 curity of the United States. 10 VerDate Sep 11 2014 23:40 Jun 19, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1793.IS S1793 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 1793 IS (2) The electric grid faces challenges from 1 aging infrastructure and a need for increased elec- 2 tric power transmission capacity. 3 (3) The United States faces a pressing need to 4 expand electric power transmission. 5 (4) Electric power transmission investments 6 will— 7 (A) improve resilience by enabling access 8 to diverse generation resources across the coun- 9 try; 10 (B) promote economic benefits and create 11 new jobs in communities across the country; 12 and 13 (C) enhance electric grid reliability. 14 SEC. 3. ESTABLISHMENT OF ELECTRIC POWER TRANS- 15 MISSION LINES. 16 (a) IN GENERAL.—Subpart E of part IV of sub- 17 chapter A of chapter 1 of the Internal Revenue Code of 18 1986 is amended by inserting after section 48E the fol- 19 lowing new section: 20 ‘‘SEC. 48F. QUALIFYING ELECTRIC POWER TRANSMISSION 21 LINE CREDIT. 22 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec- 23 tion 46, the qualifying electric power transmission line 24 credit for any taxable year is an amount equal to 30 per- 25 VerDate Sep 11 2014 23:40 Jun 19, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1793.IS S1793 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 1793 IS cent of the qualified investment for such taxable year with 1 respect to any qualifying electric power transmission line 2 property of the taxpayer. 3 ‘‘(b) QUALIFYING INVESTMENT.— 4 ‘‘(1) IN GENERAL.—For purposes of subsection 5 (a), the qualified investment for any taxable year is 6 the basis of any qualifying electric power trans- 7 mission line property placed in service by the tax- 8 payer during such taxable year. 9 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI- 10 TURES RULES MADE APPLICABLE.—Rules similar to 11 the rules of subsections (c)(4) and (d) of section 46 12 (as in effect on the day before the enactment of the 13 Revenue Reconciliation Act of 1990) shall apply for 14 purposes of this section. 15 ‘‘(c) QUALIFYING ELECTRIC POWER TRANSMISSION 16 LINE PROPERTY.—For purposes of this section, the term 17 ‘qualifying electric power transmission line property’ 18 means any overhead, submarine, or underground prop- 19 erty— 20 ‘‘(1) which is a qualifying electric power trans- 21 mission line that transmits electricity— 22 ‘‘(A) across not less than 2 States or not 23 less than 150 continuous miles, or 24 VerDate Sep 11 2014 23:40 Jun 19, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1793.IS S1793 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •S 1793 IS ‘‘(B) across the Outer Continental Shelf 1 (as defined in section 2 of the Outer Conti- 2 nental Lands Act (43 U.S.C. 1331)), or 3 ‘‘(2) which is related transmission property. 4 ‘‘(d) QUALIFYING ELECTRIC POWER TRANSMISSION 5 LINE.—For purposes of this section— 6 ‘‘(1) IN GENERAL.—The term ‘qualifying elec- 7 tric power transmission line’ means any of the fol- 8 lowing: 9 ‘‘(A) NEW TRANSMISSION PROPERTY.— 10 ‘‘(i) IN GENERAL.—Any electric power 11 transmission line which is— 12 ‘‘(I) originally placed in service 13 after the date of enactment of this 14 section, 15 ‘‘(II) primarily used for one or 16 more purposes described in clause (ii), 17 and 18 ‘‘(III) described in clause (iv). 19 ‘‘(ii) PURPOSES DESCRIBED.—The 20 purposes described in this clause are— 21 ‘‘(I) enhancing resilience to pre- 22 pare for, withstand, and recover rap- 23 idly from disruptions from the impact 24 VerDate Sep 11 2014 23:40 Jun 19, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1793.IS S1793 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •S 1793 IS of weather events, wildfires, or natural 1 disasters, 2 ‘‘(II) addressing clearance con- 3 cerns, 4 ‘‘(III) facilitating the inter- 5 connection of electric generation ca- 6 pacity to the bulk-power system (as 7 defined in section 215 of the Federal 8 Power Act), or 9 ‘‘(IV) addressing high load needs 10 of 2,000 ampere and above. 11 ‘‘(iii) MULTIPLE TRANSMISSION LINES 12 LOCATED IN THE SAME RIGHT-OF-WAY.—A 13 transmission line is described in this clause 14 if such a transmission line— 15 ‘‘(I) is co-located in the same 16 right-of-way or adjacent right-of-way 17 as one or more other overhead, sub- 18 marine, or underground transmission 19 lines, and 20 ‘‘(II) together with the other 21 transmission lines described in sub- 22 clause (I), has a transmission capacity 23 of not less than 1,000 megawatts. 24 VerDate Sep 11 2014 23:40 Jun 19, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1793.IS S1793 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •S 1793 IS ‘‘(iv) ADDITIONAL REQUIREMENTS 1 FOR NEW TRANSMISSION PROPERTY.—An 2 electric power transmission line is de- 3 scribed in this clause if— 4 ‘‘(I) such transmission line— 5 ‘‘(aa) includes an advanced 6 transmission conductor, and 7 ‘‘(bb) is capable of transmit- 8 ting electricity at a voltage of not 9 less than 100 kilovolts, or 10 ‘‘(II) such transmission line— 11 ‘‘(aa) is— 12 ‘‘(AA) capable of trans- 13 mitting electricity at a volt- 14 age of not less than 345 15 kilovolts, or 16 ‘‘(BB) a super- 17 conducting transmission 18 line, and 19 ‘‘(bb) has a transmission ca- 20 pacity of not less than 750 21 megawatts or is a transmission 22 line described in clause (iii). 23 VerDate Sep 11 2014 23:40 Jun 19, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1793.IS S1793 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •S 1793 IS ‘‘(B) MODIFICATION OF EXISTING TRANS- 1 MISSION PROPERTY.—Any electric power trans- 2 mission line which— 3 ‘‘(i) was placed in service before the 4 date of the enactment of this section, 5 ‘‘(ii) is modified after the date of the 6 enactment of this Act in a manner that in- 7 creases the transmission capacity of such 8 transmission line by not less than 500 9 megawatts, and 10 ‘‘(iii) after the completion of such 11 modification, is an electric power trans- 12 mission line which satisfies the require- 13 ments under subclauses (II) and (III) of 14 subparagraph (A)(i). 15 ‘‘(2) ADVANCED TRANSMISSION CONDUCTOR.— 16 The term ‘advanced transmission conductor’ means 17 a transmission conductor technology that uses re- 18 cently developed technology or materials such as a 19 composite core and such other future advances as 20 determined by the Secretary, in consultation with 21 the Secretary of Energy. 22 ‘‘(3) SUPERCONDUCTING TRANSMISSION 23 LINE.—The term ‘superconducting transmission line’ 24 VerDate Sep 11 2014 23:40 Jun 19, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1793.IS S1793 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •S 1793 IS means a transmission line that conducts all of its 1 current over a super-conducting material. 2 ‘‘(e) RELATED TRANSMISSION PROPERTY.—For pur- 3 poses of this section— 4 ‘‘(1) IN GENERAL.—The term ‘related trans- 5 mission property’ means any of the following: 6 ‘‘(A) TRANSMISSION PROPERTY USED FOR 7 INTERCONNECTION OR GENERATOR TIE-LINE.— 8 Any electric power transmission line which is— 9 ‘‘(i) placed in service after the date of 10 enactment of this section, 11 ‘‘(ii) primarily used— 12 ‘‘(I) as a generator interconnec- 13 tion tie line at an associated facility 14 that extends from the secondary 15 (high) side of a generator step-up 16 transformer to the point of inter- 17 connection with the host transmission 18 owner from interconnecting new gen- 19 eration resources or facilities to the 20 electric grid, or 21 ‘‘(II) for network upgrades asso- 22 ciated with the interconnection of new 23 generation resources or facilities to 24 the electric grid, 25 VerDate Sep 11 2014 23:40 Jun 19, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1793.IS S1793 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •S 1793 IS ‘‘(iii) primarily used for one or more 1 purposes described in subparagraph 2 (d)(1)(A)(ii), and 3 ‘‘(iv) capable of transmitting elec- 4 tricity at a voltage of not less than 230 5 kilovolts. 6 ‘‘(B) GRID ENHANCING TECHNOLOGY.— 7 Any grid enhancing technology property used in 8 the operation of the electric power transmission 9 line described in subparagraph (A) or (B) of 10 subsection (d)(1). 11 ‘‘(C) SUBCOMPONENTS.—Any conductors 12 or cables, towers, insulators, reactors, capaci- 13 tors, circuit breakers, static VAR compensators, 14 static synchronous compensators, power con- 15 verters, transformers, synchronous condensers, 16 braking resistors, and any ancillary facilities 17 and equipment necessary for the proper oper- 18 ation of the electric transmission line described 19 in subparagraph (A) or (B) of subsection (d)(1) 20 or for the proper operation of any property de- 21 scribed in subsection (1)(A). 22 ‘‘(2) GRID ENHANCING TECHNOLOGY PROP- 23 ERTY.—The term ‘grid enhancing technology prop- 24 erty’ means power flow controls and transmission 25 VerDate Sep 11 2014 23:40 Jun 19, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1793.IS S1793 pbinns on DSKJLVW7X2PROD with $$_JOB 10 •S 1793 IS switching equipment, storage technology, and hard- 1 ware or software that enables dynamic line ratings, 2 advanced line rating management technologies, on 3 new or existing transmission property for the pur- 4 pose of enhancing the capacity, efficiency, resiliency, 5 or reliability of an electric power transmission sys- 6 tem and such other similar property determined by 7 the Secretary, in consultation with the Secretary of 8 Energy. 9 ‘‘(f) TERMINATION.—This section shall not apply to 10 any property the construction of which begins after De- 11 cember 31, 2033.’’. 12 (b) PUBLIC UTILITY PROPERTY.—Paragraph (2) of 13 section 50(d) of the Internal Revenue Code is amended— 14 (1) by striking ‘‘(as defined in section 15 48(c)(6))’’ and inserting ‘‘(as defined in section 16 48(c)(6), except that subparagraph (D) of such sec- 17 tion shall not apply) or any qualifying electric power 18 transmission line property (as defined by section 19 48F(c))’’, and 20 (2) in subparagraph (B)— 21 (A) by inserting ‘‘or qualifying electric 22 transmission line property’’ after ‘‘each energy 23 storage technology’’, and 24 VerDate Sep 11 2014 23:40 Jun 19, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1793.IS S1793 pbinns on DSKJLVW7X2PROD with $$_JOB 11 •S 1793 IS (B) by inserting ‘‘or the qualifying electric 1 transmission line property’’ after ‘‘the energy 2 storage technology’’. 3 (c) TRANSFER OF CERTAIN CREDITS.—Section 4 6418(f)(1)(A) of the Internal Revenue Code of 1986 is 5 amended by adding the following new clause: 6 ‘‘(xii) The qualifying electric power 7 transmission line credit under section 8 48F.’’. 9 (d) CONFORMING AMENDMENTS.— 10 (1) Section 46 of the Internal Revenue Code of 11 1986 is amended— 12 (A) by striking ‘‘and’’ at the end of para- 13 graph (6), 14 (B) by striking the period at the end of 15 paragraph (7) and inserting ‘‘, and’’, and 16 (C) by adding at the end the following new 17 paragraph: 18 ‘‘(8) the qualifying electric power transmission 19 line credit.’’. 20 (2) Section 49(a)(1)(C) of such Code is amend- 21 ed— 22 (A) by striking ‘‘and’’ at the end of clause 23 (vii), 24 VerDate Sep 11 2014 23:40 Jun 19, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1793.IS S1793 pbinns on DSKJLVW7X2PROD with $$_JOB 12 •S 1793 IS (B) by striking the period at the end of 1 clause (viii) and inserting ‘‘, and’’, and 2 (C) by adding at the end the following new 3 clause: 4 ‘‘(ix) the basis of any qualifying elec- 5 tric power transmission line property under 6 section 48F.’’. 7 (3) The table of sections for subpart E of part 8 IV of subchapter A of chapter 1 of such Code is 9 amended by inserting after the item relating to sec- 10 tion 48E the following new item: 11 ‘‘Sec. 48F. Qualifying electric power transmission line credit.’’. (e) EFFECTIVE DATE.—The amendments made by 12 this section shall apply to property placed in service after 13 December 31, 2023. 14 Æ VerDate Sep 11 2014 23:40 Jun 19, 2023 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6301 E:\BILLS\S1793.IS S1793 pbinns on DSKJLVW7X2PROD with $$_JOB