Transmission investment tax credit

(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: 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 6 percent of the qualified investment for such taxable year with respect to any qualifying electric power transmission line property of the taxpayer. (b) Qualified 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 date of 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 no fewer 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 applicable new transmission property and any modified existing transmission property. (2) Applicable new transmission property (A) In general The term applicable new transmission property means any electric power transmission line which is— (i) originally placed in service after the date of the enactment of this section, (ii) primarily used for 1 or more purposes described in subparagraph (B), and (iii) described in subparagraph (C). (B) Purposes described The purposes described in this subparagraph 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 power 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. (C) Additional requirements for new transmission property An electric power transmission line is described in this subparagraph if— (i) such transmission line— (I) includes an advanced transmission conductor, and (II) is capable of transmitting electricity at a voltage of not less than 100 kilovolts, or (ii) such transmission line— (I) is a superconducting transmission line or is capable of transmitting electricity at a voltage of at least 345 kilovolts, and (II) has a transmission capacity of not less than 750 megawatts or is a transmission line described in subparagraph (D). (D) Multiple transmission lines located in the same right-of-way A transmission line is described in this subparagraph if such a transmission line— (i) is co-located in the same right-of-way or adjacent right-of-way as 1 or more other overhead, submarine, or underground transmission lines, and (ii) together with the other transmission lines described in subparagraph (A), has a transmission capacity of not less than 1,000 megawatts. (3) Modified existing transmission property The term modified existing transmission property means any electric power transmission line which— (A) was placed in service before the date of the enactment of this section, (B) is modified after the date of enactment of this Act in a manner that— (i) increases the transmission capacity of such transmission line by not less than 500 megawatts, or (ii) includes an advanced transmission conductor that transmits electricity at a voltage of not less than 100 kilovolts, and (C) after the completion of such modification, is an electric power transmission line which satisfies the requirements under subclauses (ii) and (iii) of paragraph (2)(A). (4) 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. (5) 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 1 or more purposes described in subsection (d)(2)(B), 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 paragraph (2) or (3) of subsection (d). (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 power transmission line described in paragraph (2) or (3) of subsection (d) or for the proper operation of any property described in subsection (d)(2). (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) Increased credit amount for certain transmission line property (1) In general In the case of any qualifying electric power transmission line property which meets the requirements of paragraph (2), the amount of credit determined under subsection (a) (determined without regard to this subsection) shall be equal to such amount multiplied by 5. (2) Facility requirements Qualifying electric power transmission line property shall be treated as meeting the requirements of this paragraph if— (A) the construction of such property meets rules similar to the rules of section 48(a)(10) (relating to prevailing wage requirements) and section 45(b)(8) (relating to apprenticeship requirements), or (B) the construction of such property begins before the date that is 60 days after the Secretary publishes guidance with respect to the requirements under subparagraph (A). (g) Termination This section shall not apply to any property the construction of which begins after December 31, 2035.. (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 power transmission line property after each energy storage technology, and (B) by inserting or the qualifying electric power 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 at the end the following: (xiii) 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) in paragraph (6), by striking and at the end, (B) in paragraph (7), by striking the period at the end and inserting, and, and (C) by adding at the end the following: (8) the qualifying electric power transmission line credit.. (2) Section 49(a)(1)(C) of such Code is amended— (A) in clause (vii), by striking and at the end, (B) in clause (viii), by striking the period at the end and inserting, and, and (C) by adding at the end the following: (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, 2025.