Section 1 Short title
This Act may be cited as the “Energy Opportunity Zones Act of 2018”.
Energy Opportunity Zones Act of 2018
A BILL
To amend the Internal Revenue Code of 1986 to provide for energy opportunity zones.
Sec. 2 Opportunity zones
In general— Chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following:
“Z Energy opportunity Zones
“1400Z–1. Energy opportunity zones
“(a) Production tax credit—In the case of a qualified facility located within an energy opportunity zone, section 45 shall be administered as if—
“(1) subsection (b)(5) did not apply,
“(2) “2050” were substituted for “2020” in subsection (d)(1),
“(3) “2050” were substituted for “2017” each place such term appears in subsection (d)(2)(A),
“(4) “2050” were substituted for “2017” each place such term appears in subsection (d)(3)(A)(i),
“(5) “2050” were substituted for “2017” in subsection (d)(4)(B),
“(6) “2050” were substituted for “2017” in paragraphs (6) and (7) of subsection (d),
“(7) “2050” were substituted for “2017” each place such term appears in subsection (d)(9), and
“(8) “2050” were substituted for “2017” in subsection (d)(11)(B).
“(b) Investment tax credit—In the case of energy property placed in service within an energy opportunity zone, section 48 shall be administered as if—
“(1) “2050” were substituted for “2022” in subsection (a)(2)(A)(i)(II),
“(2) “2050” were substituted for “2017” in clauses (ii) and (vii) of subsection (a)(3)(A),
“(3) “2050” were substituted for “2017” and “2050” were substituted for “2020” in subsection (a)(5)(C)(ii),
“(4) paragraphs (5)(E) and (6) of subsection (a) did not apply,
“(5) paragraphs (1)(D) and (2)(D) of subsection (c) did not apply,
“(6) “2050” were substituted for “2017” in subsection (c)(3)(A)(iv), and
“(7) subsection (c)(4)(C) did not apply.
“(c) Energy opportunity zone defined—For the purposes of this section, the term energy opportunity zone means a municipality or county that has within its boundaries a nuclear power plant that ceased operation during the 10-year period beginning on January 1, 2018.”
Clerical amendment— The table of subchapters for chapter 1 of such Code is amended by adding at the end the following new item:
Effective date— The amendments made by this section shall apply with respect to taxable years beginning after the date of the enactment of this Act.
Sec. 3 Energy credit for qualified offshore wind facilities
in subsection (a)—
in paragraph (2)(A)(i)—
in subclause (II), by striking “paragraph (3)(A)(i)” and inserting “clause (i) or (ix) of paragraph (3)(A)”,
by striking “and” at the end of subclause (III), and
by adding at the end the following new subclause:
“(V) qualified offshore wind property, and”
in paragraph (3)(A)—
in clause (vi), by striking “or” at the end,
by adding at the end the following new clause:
“(viii) qualified offshore wind property, but only with respect to property the construction of which begins before January 1, 2026, or
“(ix) equipment which receives, stores, and delivers energy using batteries, compressed air, pumped hydropower, hydrogen storage (including hydrolysis), thermal energy storage, regenerative fuel cells, flywheels, capacitors, superconducting magnets, or other technologies identified by the Secretary in consultation with the Secretary of Energy, and which has a capacity of not less than 5 megawatt hours,”
in subsection (c), by adding at the end the following new paragraph:
“(5) Qualified offshore wind property
“(A) In general—The term qualified offshore wind property means an offshore facility, other than qualified small wind energy property, that—
“(i) uses wind to produce electricity, and
“(ii) is located not farther than 50 miles from the boundary of an energy opportunity zone (as defined in section 1400Z–1).
“(B) Offshore facility—The term offshore facility means any facility located in the inland navigable waters of the United States, including the Great Lakes, or in the coastal waters of the United States, including the territorial seas of the United States, the exclusive economic zone of the United States, and the outer Continental Shelf of the United States.”
Effective date— The amendments made by this section shall apply to property placed in service after December 31, 2016.