1. Short title
This Act may be cited as the “Incentivizing New and Valuable Energy Storage Technology (INVEST) Act of 2019”.
Incentivizing New and Valuable Energy Storage Technology (INVEST) Act of 2019
A BILL
To amend the Internal Revenue Code to provide tax credits for energy storage technology, and for other purposes.
2. Energy credit for energy storage technologies
In general— Subclause (II) of section 48(a)(2)(A)(i) of the Internal Revenue Code of 1986 is amended by striking “paragraph (3)(A)(i)” and inserting “clause (i) or (viii) of paragraph (3)(A)”.
Energy storage technologies— Subparagraph (A) of section 48(a)(3) of the Internal Revenue Code of 1986 is amended by striking “or” at the end of clause (vi), by adding “or” at the end of clause (vii), and by adding at the end the following new clause:
“(viii) 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 kilowatt hours,”
by striking “energy” in the heading and inserting “and energy storage”; and
by striking “paragraph (3)(A)(i)” both places it appears and inserting “clause (i) or (viii) of paragraph (3)(A)”.
Effective date— The amendments made by this section shall apply to property placed in service after December 31, 2018.
3. Residential energy efficient property credit for battery storage technology
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 inserting “and” after the comma at the end of paragraph (5), and by adding at the end the following new paragraph:
“(6) the qualified battery storage technology expenditures,”
Qualified battery storage technology expenditure— Subsection (d) of section 25D of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(6) Qualified battery storage technology expenditure—The term qualified battery storage technology expenditure means an expenditure for battery storage technology which—
“(A) is installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and
“(B) has a capacity of not less than 3 kilowatt hours.”
Effective date— The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2018.
4. Public utility property
by adding after the first sentence the following new sentence: “At the election of a taxpayer, this paragraph shall not apply to energy property described in clause (viii) of section 48(a)(3)(A) that is placed in service by the taxpayer after December 31, 2018, provided—”; and
by adding the following new subparagraphs:
“(A) no election under this paragraph shall be permitted if the making of such election is prohibited by, or required by, a State or political subdivision thereof, by any agency or instrumentality of the United States, or by a public service or public utility commission or other similar body of any State or political subdivision that regulates public utilities as described in section 7701(a)(33)(A),
“(B) an election under this paragraph shall be made separately with respect to each energy property by the due date (including extensions) of the Federal tax return for the taxable year in which such property is placed in service by the taxpayer, and once made, may be revoked only with the consent of the Secretary, and
“(C) an election shall not apply with respect to any energy property described in such subparagraph if such property has a maximum energy capacity equal to or less than 14 kilowatt hours.”
Effective date— The amendments made by this section shall apply to property placed in service after December 31, 2018.