[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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