[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3918 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3918

To amend the Internal Revenue Code of 1986 to provide a tax credit for 
 qualified distributed thermal energy storage property, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 22, 2009

 Mr. Thompson of California (for himself, Mr. Herger, Mr. Pomeroy, Mr. 
     Larson of Connecticut, Mr. Michaud, and Ms. Pingree of Maine) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide a tax credit for 
 qualified distributed thermal energy storage property, 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 ``Thermal Energy Cooling and Heating 
Act of 2009''.

SEC. 2. CREDIT FOR QUALIFIED DISTRIBUTED THERMAL STORAGE PROPERTY 
              INSTALLED IN A PRINCIPAL RESIDENCE.

    (a) In General.--Subsection (a) of section 25D of the Internal 
Revenue Code of 1986 is amended by striking ``and'' at the end of 
paragraph (4), by striking the period at the end of paragraph (5) and 
inserting ``, and'', and by adding at the end the following new 
paragraph:
            ``(6) 30 percent of the qualified distributed thermal 
        energy storage property expenditures made by the taxpayer 
        during such year.''.
    (b) Qualified Distributed Thermal Energy Storage Property 
Expenditure.--Section 25D(d) of such Code is amended by adding at the 
end the following new paragraph:
            ``(6) Qualified distributed thermal energy storage property 
        expenditure.--The term `qualified distributed thermal energy 
        storage property expenditure' means an expenditure for 
        qualified distributed thermal energy storage property (as 
        defined in section 48(e)) installed on or in connection with a 
        dwelling unit located in the United States and used as a 
        principal residence (within the meaning of section 121) by the 
        taxpayer.''.
    (c) Modification of Maximum Credit.--
            (1) In general.--Paragraph (1) of section 25D(b) of such 
        Code is amended by striking ``and'' at the end of subparagraph 
        (B), by striking the period at the end of subparagraph (C), and 
        by adding at the end the following new subparagraphs:
                    ``(D) $500 with respect to each half kilowatt of 
                peak demand reduction (as defined in section 48(e)(3)) 
                by cooling systems which are qualified distributed 
                thermal energy storage property (as defined in section 
                48(e)) for which qualified distributed thermal energy 
                storage property expenditures are made, and
                    ``(E) $150 for each nameplate kilowatt input of 
                thermal heat storage by heating systems which are 
                qualified distributed thermal energy storage property 
                (as defined in section 48(e)) for which qualified 
                distributed thermal energy storage property 
                expenditures are made.''.
            (2) Conforming amendments.--Paragraph (4) of section 25D(e) 
        of such Code is amended--
                    (A) by amending so much of such paragraph as 
                precedes subparagraph (B) to read as follows:
            ``(4) Limitations in case of joint occupancy.--In the case 
        of any dwelling unit which is jointly occupied and used during 
        any calendar year as a residence by two or more individuals the 
        following rules shall apply:
                    ``(A) Maximum expenditures.--The maximum amount of 
                expenditures which may be taken into account under 
                subsection (a) by all such individuals with respect to 
                such dwelling unit during such calendar year shall be--
                            ``(i) $1,667 in the case of each half 
                        kilowatt of capacity of qualified fuel cell 
                        property (as defined in section 48(c)(1)) for 
                        which qualified fuel cell property expenditures 
                        are made,
                            ``(ii) $1,667 in case of each half kilowatt 
                        of peak demand reduction (as defined in section 
                        48(e)(3)) by cooling systems which are 
                        qualified distributed thermal energy storage 
                        property (as defined in section 48(e)) for 
                        which qualified distributed thermal energy 
                        storage property expenditures are made, and
                            ``(iii) $333 in the case of each nameplate 
                        kilowatt input of thermal heat storage by 
                        heating systems which are qualified distributed 
                        thermal energy storage property (as defined in 
                        section 48(e)) for which qualified distributed 
                        thermal energy storage property expenditures 
                        are made.'', and
                    (B) by adding at the end of subparagraph (B) the 
                following:
                ``This subparagraph shall be applied separately with 
                respect to qualified fuel cell property expenditures, 
                qualified distributed thermal energy storage property 
                expenditures with respect cooling systems, and 
                qualified distributed thermal energy storage property 
                with respect to heating systems.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. BUSINESS CREDIT FOR QUALIFIED DISTRIBUTED THERMAL ENERGY 
              STORAGE PROPERTY.

    (a) In General.--Subparagraph (A) of section 48(a)(3) of the 
Internal Revenue Code of 1986 is amended by deleting ``or'' at the end 
of clause (vi), by inserting ``or'' at the end of clause (vii), and by 
inserting clause (vii) the following new clause:
                            ``(viii) qualified distributed thermal 
                        energy storage property but only with respect 
                        to periods ending before January 1, 2017,''.
    (b) 30 Percent Credit.--Clause (i) of section 48(a)(2)(A) of such 
Code is amended by striking ``and'' at the end of subclause (III) and 
by inserting after subclause (IV) the following new subclause:
                                    ``(V) qualified distributed thermal 
                                energy storage property, and''.
    (c) Qualified Distributed Thermal Energy Storage Property.--Section 
48 of such Code is amended by adding at the end the following new 
subsection:
    ``(e) Qualified Distributed Thermal Energy Storage Property.--For 
the purposes of this section:
            ``(1) In general.--The term `qualified distributed thermal 
        energy storage property' means a heating or cooling system 
        which--
                    ``(A) consists of mechanical thermal heat storage 
                or cooling storage components which are designed to 
                create, store, and supply off peak or renewable 
                electric distributed thermal energy or to reduce or 
                avoid peak electrical demand of conventional mechanical 
                cooling or heating equipment,
                    ``(B) has a nameplate operational capability to 
                deliver a minimum of 29,000 Btu per hour of cooling 
                capacity or a minimum of installed nameplate thermal 
                heat storage capacity of 85,000 Btu,
                    ``(C) is designed to deliver such cooling capacity 
                for a minimum continuous period of 3 hours, available 
                daily from May 1 through September 30, or a minimum of 
                15,000 Btu per hour of heating capacity for a minimum 
                continuous period of 3 hours, available daily from 
                October 1 through April 30, coincident with daytime 
                peak load periods,
                    ``(D) is designed so as to utilize off-peak or 
                renewable electricity or reduce peak kilowatt demand by 
                90 percent for the heating and cooling load served, and
                    ``(E) is certified by the manufacturer as designed 
                so as not to exceed the energy consumption of 
                conventional HVAC equipment by more than 10 percent.
            ``(2) Inclusion of related equipment.--Such term shall 
        include any secondary components which integrate the 
        distributed thermal energy storage system described in 
        paragraph (1) with the conventional heating or cooling system, 
        including equipment and controls for measuring and reporting 
        operation and performance, but shall not include any portion of 
        the conventional heating or cooling system.
            ``(3) Limitation.--
                    ``(A) In general.--In case of qualified distributed 
                thermal energy storage property placed in service 
                during the taxable year, the credit otherwise 
                determined under this section for such year with 
                respect to such property shall not exceed an amount 
                equal to $500 for each 0.5 kilowatt of peak demand 
                reduction for property placed in service for cooling or 
                $150 for each nameplate kilowatt input for property 
                placed in service for heating.
                    ``(B) Peak demand reduction.--For purposes of this 
                subsection, the term `peak demand reduction' means the 
                removal or avoidance of electrical demand (kW) on the 
                utility grid system during the daily time period of 
                high electrical demand. The peak demand reduction for 
                air conditioning property shall be determined based on 
                Energy Efficiency Ratio (EER) standards for residential 
                and commercial air conditioning equipment, established 
                under the Energy Policy and Conservation Act of 
                1975.''.
    (d) Effective Date.--The amendments made by this Act shall apply to 
taxable years beginning after the date of the enactment of this Act.

SEC. 4. QUALIFIED DISTRIBUTED THERMAL ENERGY STORAGE PROPERTY MADE 
              ELIGIBLE FOR NEW CLEAN RENEWABLE ENERGY BONDS.

    (a) In General.--Paragraph (1) of section 54C(d) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) Qualified renewable energy facility.--The term 
        `qualified renewable energy facility' means--
                    ``(A) any qualified facility (as determined under 
                section 45(d) without regard to paragraphs (8) and (10) 
                thereof and to any placed in service date), and
                    ``(B) any qualified distributed thermal energy 
                storage property (as defined in section 48(e)),
        owned by a public power provider, a governmental body, or a 
        cooperative electric company.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.
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