1.3-year applicable recovery
period for depreciation of qualified energy management devices
(a)Section 168(e)(3)(A)
of the Internal Revenue Code of 1986 (defining 3-year property) is amended by
striking and
at the end of clause (ii), by striking the period
at the end of clause (iii) and inserting , and
, and by adding at
the end the following new clause:
(iv)any qualified energy management
device.
.
(b)Definition of
qualified energy management deviceSection 168(i) of the Internal Revenue Code
of 1986 (relating to definitions and special rules), as amended by the Energy
Tax Incentives Act of 2005, is amended by inserting at the end the following
new paragraph:
(18)Qualified
energy management device
(A)The term
qualified energy management device means any energy management
device—
(i)which is placed in service before January
1, 2008, by a taxpayer who is a supplier of electric energy or a provider of
electric energy services,
(ii)the original use of which commences with
the taxpayer, and
(iii)the purchase of which is subject to a
binding contract entered into after June 23, 2005, but only if there was no
written binding contract entered into on or before such date.
(B)For
purposes of subparagraph (A), the term energy management device
means any meter or metering device which is used by the taxpayer—
(i)to measure and record electricity usage
data on a time-differentiated basis in at least 4 separate time segments per
day, and
(ii)to provide such data on at least a monthly
basis to both consumers and the
taxpayer.
.
(c)The table contained in
section 168(g)(3)(B) of the Internal Revenue Code of 1986 is amended by
inserting after the item relating to subparagraph (A)(iii) the
following:
.
(d)The amendments made by
this section shall apply to property placed in service after December 31, 2005,
in taxable years ending after such date.