S.Amdt. 1468

SA 1468. Ms. CANTWELL submitted an amendment intended to be proposed by her to the bill S. 14, to enhance the energy security of the United States, and for other purposes; which was ordered to lie on the table; as follows:

At an appropriate place in the bill, add the following:

“SEC. . COST RECOVERY FOR QUALIFIED ENERGY MANAGEMENT DEVICES AND QUALIFIED ENERGY MANAGEMENT SOFTWARE.

(a) Qualified Energy Management Device Defined as 3-Year Property.--Section 168(e)(3)(A) (defining 3-year property) is amended by striking “and” at the end of clause (ii), by striking the period at the end of clause (iii) and inserting “, and”, and by adding at the end the following new clause:

“(iv) any qualified energy management device.

Nothing in any other provision of this title shall be construed to treat property as not being described in clause (iv) by reason of its use in connection with public utility property (within the meaning of subsection (i)(9)).”.

(b) Definition of Qualified Energy Management Device.--Section 168(i) (relating to definitions and special rules) is amended by inserting at the end the following new paragraph:

“(15) Qualified energy management device--

“(A) In general.--The term “qualified energy management device” means any energy management device which is placed in service before January 1, 2008, by a taxpayer who is a supplier of electric energy or a provider of electric energy services.

“(B) Energy management device.--For purposes of subparagraph (A), the term “energy management device” means any meter or metering device which is used by the taxpayer--

“(i) to measure and record electricity usage data on a time-differentiated basis in at least 4 separate time segments per day, and

“(ii) to provide such data on at least a monthly basis to both consumers and the taxpayer.”.

(c) Expensing of Qualified Energy Management Software.--

Section 167 is amended by redesignating subsection (h) as subsection (i) and adding the following new subsection:

“(h) Treatment of Qualified Energy Management Software.--

“(1) In general.--There shall be allowed as a deduction an amount equal to the cost of qualified energy management software placed in service during the taxable year and before January 1, 2008.

“(2) Qualified energy management software.--For purposes of this subsection, qualified energy management software is computer software (as described in subsection (f)(1)(B)) for which a depreciation deduction would be allowable (but for this subsection) under subsection (a), and which is used by the taxpayer primarily--

“(i) to collect electricity usage data from one or more qualified energy management devices (as defined in section 168(i)(15)),

“(ii) to present or display to the consumer electricity usage data collected by such devices, or

“(iii) to manage or control a consumer's electricity load.

“(3) Basis reduction.--For purposes of this title, the basis of any property shall be reduced by the amount of the deduction with respect to such property which is allowed by paragraph (1).

“(4) Certain regulated companies--This subsection shall not apply to any qualified energy management software that is public utility property (within the meaning of section 168(i)(10)) if the taxpayer does not use a normalization method of accounting (within the meaning of section 168(i)(9)).”

(d) Conforming Amendments--

(1) Section 263(a)(1) is amended by striking ‘or' at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting ‘, or', and by inserting after subparagraph (H) the following new subparagraph:

“(i) expenditures for which a deduction is allowed under section 167(h)(1).”.

(2) Section 1016(a) is amended by striking “and” at the end of paragraph (27), by striking the period at the end of paragraph (28) and inserting “, and”, and by inserting after paragraph (28) the following new paragraph:

“(29) to the extent provided in section 167(h)(1).”

(3) Section 1245(a) is amended by inserting “167(h)(1),” before “179,” both places it appears in paragraphs (2)(C) and (3)(C).

(e) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.”