[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1091 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1091

  To amend the Internal Revenue Code of 1986 to provide for an energy 
 investment credit for energy storage property connected to the grid, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 20, 2009

   Mr. Wyden 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 for an energy 
 investment credit for energy storage property connected to the grid, 
                        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 ``Storage Technology of Renewable and 
Green Energy Act of 2009'' or the ``STORAGE Act of 2009''.

SEC. 2. ENERGY INVESTMENT CREDIT FOR ENERGY STORAGE PROPERTY CONNECTED 
              TO THE GRID.

    (a) 20 Percent Credit Allowed.--Subparagraph (A) of section 
48(a)(2) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of subclause (IV) of 
        clause (i),
            (2) by striking ``clause (i)'' in clause (ii) and inserting 
        ``clause (i) or (ii)'',
            (3) by redesignating clause (ii) as clause (iii), and
            (4) by inserting after clause (i) the following new clause:
                            ``(ii) 20 percent in the case of qualified 
                        energy storage property, and''.
    (b) Qualified Energy Storage Property.--Subsection (c) of section 
48 of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new paragraph:
            ``(5) Qualified energy storage property.--
                    ``(A) In general.--The term `qualified energy 
                storage property' means property--
                            ``(i) which is directly connected to the 
                        electrical grid, and
                            ``(ii) which is designed to receive 
                        electrical energy, to store such energy, and to 
                        convert such energy to electricity and deliver 
                        such electricity for sale.
                Such term may include hydroelectric pumped storage and 
                compressed air energy storage, regenerative fuel cells, 
                batteries, superconducting magnetic energy storage, 
                flywheels, thermal, and hydrogen storage, or 
                combination thereof.
                    ``(B) Minimum capacity.--The term `qualified energy 
                storage property' shall not include any property unless 
                such property in aggregate--
                            ``(i) has the ability to store at least 2 
                        megawatt hours of energy, and
                            ``(ii) has the ability to have an output of 
                        500 kilowatts of electricity for a period of 4 
                        hours.
                    ``(C) Electrical grid.--The term `electrical grid' 
                means the system of generators, transmission lines, and 
                distribution facilities which--
                            ``(i) are under the jurisdiction of the 
                        Federal Energy Regulatory Commission or State 
                        public utility commissions, or
                            ``(ii) are owned by--
                                    ``(I) a State or any political 
                                subdivision of a State,
                                    ``(II) an electric cooperative that 
                                receives financing under the Rural 
                                Electrification Act of 1936 (7 U.S.C. 
                                901 et seq.) or that sells less than 
                                4,000,000 megawatt hours of electricity 
                                per year, or
                                    ``(III) any agency, authority, or 
                                instrumentality of any one or more of 
                                the entities described in subclause (I) 
                                or (II), or any corporation which is 
                                wholly owned, directly or indirectly, 
                                by any one or more of such entities.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, under 
rules similar to the rules of section 48(m) of the Internal Revenue 
Code of 1986 (as in effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990).

SEC. 3. ENERGY STORAGE PROPERTY CONNECTED TO THE GRID 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 facility which 
        is--
                    ``(A)(i) a qualified facility (as determined under 
                section 45(d) without regard to paragraphs (8) and (10) 
                thereof and to any placed in service date), or
                    ``(ii) a qualified energy storage property (as 
                defined in section 48(c)(5)), and
                    ``(B) owned by a public power provider, a 
                governmental body, or a cooperative electric 
                company.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after the date of the enactment of this Act.

SEC. 4. ENERGY INVESTMENT CREDIT FOR ONSITE ENERGY STORAGE.

    (a) Credit Allowed.--Clause (i) of section 48(a)(2)(A) of the 
Internal Revenue Code of 1986, as amended by this Act, is amended--
            (1) by striking ``and'' at the end of subclause (III),
            (2) by inserting ``and'' at the end of subclause (IV), and
            (3) by adding at the end the following new subclause:
                                    ``(V) qualified onsite energy 
                                storage property,''.
    (b) Qualified Onsite Energy Storage Property.--Subsection (c) of 
section 48 of the Internal Revenue Code of 1986, as amended by this 
Act, is amended by adding at the end the following new paragraph:
            ``(6) Qualified onsite energy storage property.--
                    ``(A) In general.--The term `qualified onsite 
                energy storage property' means property which--
                            ``(i) provides supplemental energy to 
                        reduce peak energy requirements primarily on 
                        the same site where the storage is located, or
                            ``(ii) is designed and used primarily to 
                        receive and store intermittent renewable energy 
                        generated onsite and to deliver such energy 
                        primarily for onsite consumption.
                Such term may include property used to charge plug-in 
                and hybrid electric vehicles if such vehicles are 
                equipped with smart grid services which control time-
                of-day charging and discharging of such vehicles. Such 
                term shall not include any property for which any other 
                credit is allowed under this chapter.
                    ``(B) Minimum capacity.--The term `qualified onsite 
                energy storage property' shall not include any property 
                unless such property in aggregate--
                            ``(i) has the ability to store the energy 
                        equivalent of at least 20 kilowatt hours of 
                        energy, and
                            ``(ii) has the ability to have an output of 
                        the energy equivalent of 5 kilowatts of 
                        electricity for a period of 4 hours.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, under 
rules similar to the rules of section 48(m) of the Internal Revenue 
Code of 1986 (as in effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990).

SEC. 5. CREDIT FOR RESIDENTIAL ENERGY STORAGE EQUIPMENT.

    (a) Credit Allowed.--Subsection (a) of section 25C of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of paragraph (1),
            (2) by redesignating paragraph (2) as paragraph (3), and
            (3) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) 30 percent of the amount paid or incurred by the 
        taxpayer for qualified residential energy storage equipment 
        installed during such taxable year, and''.
    (b) Qualified Residential Energy Storage Equipment.--
            (1) In general.--Section 25C of the Internal Revenue Code 
        of 1986 is amended--
                    (A) by redesignating subsections (e), (f), and (g) 
                as subsections (f), (g), and (h), respectively, and
                    (B) by inserting after subsection (d) the following 
                new subsection:
    ``(d) Qualified Residential Energy Storage Equipment.--For purposes 
of this section, the term `qualified residential energy storage 
equipment' means property--
            ``(1) which is installed in or on a dwelling unit located 
        in the United States and owned and used by the taxpayer as the 
        taxpayer's principal residence (within the meaning of section 
        121), or on property owned by the taxpayer on which such a 
        dwelling unit is located, and
            ``(2) which--
                    ``(A) provides supplemental energy to reduce peak 
                energy requirements primarily on the same site where 
                the storage is located, or
                    ``(B) is designed and used primarily to receive and 
                store intermittent renewable energy generated onsite 
                and to deliver such energy primarily for onsite 
                consumption.
Such term may include property used to charge plug-in and hybrid 
electric vehicles if such vehicles are equipped with smart grid 
services which control time-of-day charging and discharging of such 
vehicles. Such term shall not include any property for which any other 
credit is allowed under this chapter.''.
            (2) Conforming amendment.--Section 1016(a)(33) of such Code 
        is amended by striking ``section 25C(f)'' and inserting 
        ``section 25C(g)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.
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