[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1793 Introduced in Senate (IS)]

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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 electric power transmission 
                                 lines.

    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 ``Grid Resiliency Tax Credit''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) A robust electric power transmission system is critical 
        to the economic, energy, and national security of the United 
        States.
            (2) The electric grid faces challenges from aging 
        infrastructure and a need for increased electric power 
        transmission capacity.
            (3) The United States faces a pressing need to expand 
        electric power transmission.
            (4) Electric power transmission investments will--
                    (A) improve resilience by enabling access to 
                diverse generation resources across the country;
                    (B) promote economic benefits and create new jobs 
                in communities across the country; and
                    (C) enhance electric grid reliability.

SEC. 3. ESTABLISHMENT OF ELECTRIC POWER TRANSMISSION LINES.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 48E the following new section:

``SEC. 48F. QUALIFYING ELECTRIC POWER TRANSMISSION LINE CREDIT.

    ``(a) Allowance of Credit.--For purposes of section 46, the 
qualifying electric power transmission line credit for any taxable year 
is an amount equal to 30 percent of the qualified investment for such 
taxable year with respect to any qualifying electric power transmission 
line property of the taxpayer.
    ``(b) Qualifying Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment for any taxable year is the basis of any 
        qualifying electric power transmission line property placed in 
        service by the taxpayer during such taxable year.
            ``(2) Certain qualified progress expenditures rules made 
        applicable.--Rules similar to the rules of subsections (c)(4) 
        and (d) of section 46 (as in effect on the day before the 
        enactment of the Revenue Reconciliation Act of 1990) shall 
        apply for purposes of this section.
    ``(c) Qualifying Electric Power Transmission Line Property.--For 
purposes of this section, the term `qualifying electric power 
transmission line property' means any overhead, submarine, or 
underground property--
            ``(1) which is a qualifying electric power transmission 
        line that transmits electricity--
                    ``(A) across not less than 2 States or not less 
                than 150 continuous miles, or
                    ``(B) across the Outer Continental Shelf (as 
                defined in section 2 of the Outer Continental Lands Act 
                (43 U.S.C. 1331)), or
            ``(2) which is related transmission property.
    ``(d) Qualifying Electric Power Transmission Line.--For purposes of 
this section--
            ``(1) In general.--The term `qualifying electric power 
        transmission line' means any of the following:
                    ``(A) New transmission property.--
                            ``(i) In general.--Any electric power 
                        transmission line which is--
                                    ``(I) originally placed in service 
                                after the date of enactment of this 
                                section,
                                    ``(II) primarily used for one or 
                                more purposes described in clause (ii), 
                                and
                                    ``(III) described in clause (iv).
                            ``(ii) Purposes described.--The purposes 
                        described in this clause are--
                                    ``(I) enhancing resilience to 
                                prepare for, withstand, and recover 
                                rapidly from disruptions from the 
                                impact of weather events, wildfires, or 
                                natural disasters,
                                    ``(II) addressing clearance 
                                concerns,
                                    ``(III) facilitating the 
                                interconnection of electric generation 
                                capacity to the bulk-power system (as 
                                defined in section 215 of the Federal 
                                Power Act), or
                                    ``(IV) addressing high load needs 
                                of 2,000 ampere and above.
                            ``(iii) Multiple transmission lines located 
                        in the same right-of-way.--A transmission line 
                        is described in this clause if such a 
                        transmission line--
                                    ``(I) is co-located in the same 
                                right-of-way or adjacent right-of-way 
                                as one or more other overhead, 
                                submarine, or underground transmission 
                                lines, and
                                    ``(II) together with the other 
                                transmission lines described in 
                                subclause (I), has a transmission 
                                capacity of not less than 1,000 
                                megawatts.
                            ``(iv) Additional requirements for new 
                        transmission property.--An electric power 
                        transmission line is described in this clause 
                        if--
                                    ``(I) such transmission line--
                                            ``(aa) includes an advanced 
                                        transmission conductor, and
                                            ``(bb) is capable of 
                                        transmitting electricity at a 
                                        voltage of not less than 100 
                                        kilovolts, or
                                    ``(II) such transmission line--
                                            ``(aa) is--

                                                    ``(AA) capable of 
                                                transmitting 
                                                electricity at a 
                                                voltage of not less 
                                                than 345 kilovolts, or

                                                    ``(BB) a 
                                                superconducting 
                                                transmission line, and

                                            ``(bb) has a transmission 
                                        capacity of not less than 750 
                                        megawatts or is a transmission 
                                        line described in clause (iii).
                    ``(B) Modification of existing transmission 
                property.--Any electric power transmission line which--
                            ``(i) was placed in service before the date 
                        of the enactment of this section,
                            ``(ii) is modified after the date of the 
                        enactment of this Act in a manner that 
                        increases the transmission capacity of such 
                        transmission line by not less than 500 
                        megawatts, and
                            ``(iii) after the completion of such 
                        modification, is an electric power transmission 
                        line which satisfies the requirements under 
                        subclauses (II) and (III) of subparagraph 
                        (A)(i).
            ``(2) Advanced transmission conductor.--The term `advanced 
        transmission conductor' means a transmission conductor 
        technology that uses recently developed technology or materials 
        such as a composite core and such other future advances as 
        determined by the Secretary, in consultation with the Secretary 
        of Energy.
            ``(3) Superconducting transmission line.--The term 
        `superconducting transmission line' means a transmission line 
        that conducts all of its current over a super-conducting 
        material.
    ``(e) Related Transmission Property.--For purposes of this 
section--
            ``(1) In general.--The term `related transmission property' 
        means any of the following:
                    ``(A) Transmission property used for 
                interconnection or generator tie-line.--Any electric 
                power transmission line which is--
                            ``(i) placed in service after the date of 
                        enactment of this section,
                            ``(ii) primarily used--
                                    ``(I) as a generator 
                                interconnection tie line at an 
                                associated facility that extends from 
                                the secondary (high) side of a 
                                generator step-up transformer to the 
                                point of interconnection with the host 
                                transmission owner from interconnecting 
                                new generation resources or facilities 
                                to the electric grid, or
                                    ``(II) for network upgrades 
                                associated with the interconnection of 
                                new generation resources or facilities 
                                to the electric grid,
                            ``(iii) primarily used for one or more 
                        purposes described in subparagraph 
                        (d)(1)(A)(ii), and
                            ``(iv) capable of transmitting electricity 
                        at a voltage of not less than 230 kilovolts.
                    ``(B) Grid enhancing technology.--Any grid 
                enhancing technology property used in the operation of 
                the electric power transmission line described in 
                subparagraph (A) or (B) of subsection (d)(1).
                    ``(C) Subcomponents.--Any conductors or cables, 
                towers, insulators, reactors, capacitors, circuit 
                breakers, static VAR compensators, static synchronous 
                compensators, power converters, transformers, 
                synchronous condensers, braking resistors, and any 
                ancillary facilities and equipment necessary for the 
                proper operation of the electric transmission line 
                described in subparagraph (A) or (B) of subsection 
                (d)(1) or for the proper operation of any property 
                described in subsection (1)(A).
            ``(2) Grid enhancing technology property.--The term `grid 
        enhancing technology property' means power flow controls and 
        transmission switching equipment, storage technology, and 
        hardware or software that enables dynamic line ratings, 
        advanced line rating management technologies, on new or 
        existing transmission property for the purpose of enhancing the 
        capacity, efficiency, resiliency, or reliability of an electric 
        power transmission system and such other similar property 
        determined by the Secretary, in consultation with the Secretary 
        of Energy.
    ``(f) Termination.--This section shall not apply to any property 
the construction of which begins after December 31, 2033.''.
    (b) Public Utility Property.--Paragraph (2) of section 50(d) of the 
Internal Revenue Code is amended--
            (1) by striking ``(as defined in section 48(c)(6))'' and 
        inserting ``(as defined in section 48(c)(6), except that 
        subparagraph (D) of such section shall not apply) or any 
        qualifying electric power transmission line property (as 
        defined by section 48F(c))'', and
            (2) in subparagraph (B)--
                    (A) by inserting ``or qualifying electric 
                transmission line property'' after ``each energy 
                storage technology'', and
                    (B) by inserting ``or the qualifying electric 
                transmission line property'' after ``the energy storage 
                technology''.
    (c) Transfer of Certain Credits.--Section 6418(f)(1)(A) of the 
Internal Revenue Code of 1986 is amended by adding the following new 
clause:
                            ``(xii) The qualifying electric power 
                        transmission line credit under section 48F.''.
    (d) Conforming Amendments.--
            (1) Section 46 of the Internal Revenue Code of 1986 is 
        amended--
                    (A) by striking ``and'' at the end of paragraph 
                (6),
                    (B) by striking the period at the end of paragraph 
                (7) and inserting ``, and'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(8) the qualifying electric power transmission line 
        credit.''.
            (2) Section 49(a)(1)(C) of such Code is amended--
                    (A) by striking ``and'' at the end of clause (vii),
                    (B) by striking the period at the end of clause 
                (viii) and inserting ``, and'', and
                    (C) by adding at the end the following new clause:
                            ``(ix) the basis of any qualifying electric 
                        power transmission line property under section 
                        48F.''.
            (3) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 48E the following new item:

``Sec. 48F. Qualifying electric power transmission line credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2023.
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