Bill Summary
The Electric Power Infrastructure Improvement Act is a bill that aims to amend the Internal Revenue Code of 1986 in order to provide a tax credit for the installation of electric power transmission lines that are deemed regionally significant. The bill would allow for a tax credit equal to a certain percentage of the qualified investment made by a taxpayer for the installation of these transmission lines. The percentage would vary depending on whether the lines are overhead, underground, or submarine, with a higher percentage given for underground or submarine lines. The bill also specifies the criteria that these transmission lines must meet in order to qualify for the tax credit. The bill is set to take effect on January 1, 2020, and will remain in effect until December 31, 2029.
Possible Impacts
1. This legislation could affect taxpayers by providing them with a tax credit for installation of regionally significant electric power transmission lines. This could potentially reduce their tax burden and incentivize them to invest in this type of infrastructure.
2. The legislation could also affect energy companies by providing them with a tax incentive to invest in new electric power transmission lines. This could lead to increased competition in the industry and potentially lower energy costs for consumers.
3. Residents living near proposed electric power transmission lines could be affected by this legislation, as it could lead to the construction of these lines in their communities. This could result in changes to their landscape and potential environmental impacts.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3107 Introduced in Senate (IS)]
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116th CONGRESS
1st Session
S. 3107
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
December 19, 2019
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 ``Electric Power Infrastructure
Improvement Act''.
SEC. 2. 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 48C the following new section:
``SEC. 48D. QUALIFYING ELECTRIC POWER TRANSMISSION LINE CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--For purposes of section 46, the
qualifying electric power transmission line credit for any
taxable year is an amount equal to the applicable percentage of
the qualified investment for such taxable year with respect to
any qualifying electric power transmission line property of the
taxpayer.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage shall be equal to--
``(A) in the case of any qualifying electric power
transmission line property relating to an overhead
transmission facility, 15 percent, and
``(B) in the case of any qualifying electric power
transmission line property relating to an underground
or submarine transmission facility, 25 percent.
``(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.--The
term `qualifying electric power transmission line property' means--
``(1) any overhead, submarine, or underground transmission
facility which--
``(A) is capable of transmitting electricity at a
voltage of not less than 345 kilovolts,
``(B) has a transmission capacity of not less than
1,000 megawatts,
``(C) is an alternating current or direct current
transmission line, and
``(D) delivers power produced in either a rural
area or offshore, and
``(2) 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 facility described in paragraph
(1).
``(d) Termination.--This section shall not apply to any property
placed in service after December 31, 2029.''.
(b) Conforming Amendments.--
(1) Section 46 of the Internal Revenue Code of 1986 is
amended--
(A) by striking ``and'' at the end of paragraph
(5),
(B) by striking the period at the end of paragraph
(6) and inserting ``, and'', and
(C) by adding at the end the following new
paragraph:
``(7) 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 (iv),
(B) by striking the period at the end of clause (v)
and inserting ``, and'', and
(C) by adding at the end the following new clause:
``(vi) the basis of any qualifying electric
power transmission line property under section
48D.''.
(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 48C the following new item:
``Sec. 48D. Qualifying electric power transmission line credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2019.
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