[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1212 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1212

To amend the Internal Revenue Code of 1986 to provide a credit against 
  tax for qualified energy management devices, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 20, 2001

 Ms. Cantwell 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 provide a credit against 
  tax for qualified energy management devices, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Smart Metering Promotion Act of 
2001''.

SEC. 2. ALLOWANCE OF CREDIT FOR QUALIFIED ENERGY MANAGEMENT DEVICES AND 
              RETROFITTED QUALIFIED METERS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to foreign tax credits, 
etc.) is amended by inserting after section 30A the following new 
section:

``SEC. 30B. CREDIT FOR QUALIFIED ENERGY MANAGEMENT DEVICES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year--
            ``(1) an amount equal to the lesser of--
                    ``(A) 50 percent of the cost of any qualified 
                energy management device placed in service by the 
                taxpayer during the taxable year, or
                    ``(B) $30 ($250, in the case of a taxpayer who is a 
                nonresidential consumer), and
            ``(2) for each qualified retrofitted meter originally 
        placed in service during the taxable year, an amount equal to 
        the lesser of--
                    ``(A) 50 percent of the adjusted basis of such 
                meter, or
                    ``(B) $30 ($250, in the case of a taxpayer who is a 
                nonresidential consumer).
    ``(b) Definitions.--For purposes of this section--
            ``(1) Qualified energy management device.--The term 
        `qualified energy management device' means equipment, systems, 
        software, and related devices which have as a purpose allowing 
        electric energy or natural gas consumers, suppliers, and 
        service providers to manage the purchase, sale, and use of 
        electricity or natural gas in response to energy price and 
        usage signals, in order to improve the efficiency of energy and 
        energy facility utilization.
            ``(2) Qualified retrofitted meter.--The term `qualified 
        retrofitted meter' means an electric energy or natural gas 
        meter or metering device that has been modified by the addition 
        of equipment which has as a purpose allowing electric energy or 
        natural gas consumers, suppliers, and service providers to 
        manage the purchase, sale, and use of electricity or natural 
        gas in response to energy price and usage signals, in order to 
        improve the efficiency of energy and energy facility 
        utilization.
            ``(3) Placed in service.--The term `placed in service' 
        means interconnected with other devices in a manner that 
        permits reading of energy price and usage signals on at least 
        an hourly basis.
            ``(4) Cost of meters includes cost of installation.--The 
        cost of any qualified energy management device or qualified 
        retrofitted meter referred to in paragraph (1) or (2) shall 
        include the cost of the original installation of such property.
    ``(c) Special Rules.--
            ``(1) Denial of double benefit.--No deduction or other 
        credit shall be allowed under this chapter for any expenditure 
        for which credit is allowed under this section.
            ``(2) Application with other credits.--The credit allowable 
        under subsection (a) for any taxable year shall not exceed the 
        excess (if any) of--
                    ``(A) the regular tax for the taxable year, reduced 
                by the sum of the credits allowable under subpart A and 
                sections 27, 29, and 30, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
            ``(3) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit.
            ``(4) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property that ceases 
        to be property eligible for such credit.
            ``(5) Property used outside the united states, etc., not 
        qualified.--No credit shall be allowed under subsection (a) 
        with respect to any property referred to in section 50(b)(1) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
            ``(6) Election to not take credit.--No credit shall be 
        allowed under subsection (a) for any energy management device 
        or qualified retrofitted meter if the taxpayer elects to not 
        have this section apply to such device or meter.
    ``(d) Termination.--This section shall not apply to property placed 
in service after December 31, 2005.''.
    (b) Conforming Amendments.--
            (1) The table of contents for subpart B of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by inserting after the item relating to section 30A 
        the following new item:

        ``Sec. 30B. Credit for qualified energy management devices.''.
            (2) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (27), by striking the period at 
        the end of paragraph (28) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(29) to the extent provided in section 30B(c)(3).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to qualified energy management devices placed in service after 
December 31, 2000, and to qualified retrofitted meters that are placed 
in service after, or that are in use as of, such date.
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