S.Amdt. 1834

SA 1834. Mr. BENNET submitted an amendment intended to be proposed to
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation
pursuant to titles II and V of the concurrent resolution on the budget
for fiscal year 2018; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. __. INVESTMENT CREDIT FOR ELECTRICITY GRID SECURITY AND
MODERNIZATION PROPERTY.

(a) In General.--Section 48(a)(3)(A) is amended by striking
``or'' at the end of clause (vi), by inserting ``or'' at the
end of clause (vii), and by adding at the end the following
new clause:
``(viii) grid security and modernization property.''.
(b) Rate of Credit.--Section 48(a)(2)(A) is amended--
(1) by striking ``and'' at the end of clause (i)(IV);
(2) by redesignating clause (ii) as clause (iii); and
(3) by inserting after clause (i) the following new clause:
``(ii) in the case of grid security and modernization
property--

``(I) 4 percent for the taxable year beginning after
December 31, 2019, and ending before January 1, 2021,
``(II) 8 percent for the taxable year beginning after
December 31, 2020, and ending before January 1, 2022, and
``(III) 20 percent for taxable years beginning after
December 31, 2021, and''.

(c) Grid Security and Modernization Property.--
(1) In general.--Section 48(c) is amended by adding at the
end the following new paragraph:
``(5) Grid security and modernization property.--
``(A) In general.--The term `grid security and
modernization property' means any qualified software,
qualified automated distribution device, advanced voltage
control system, advanced metering property, and advanced and
secure transmission system technologies.
``(B) Qualified software.--The term `qualified software'
means any software which--
``(i) is used to optimize efficiency or connectivity of the
electrical grid, including detailed electrical models,
modeling and simulation tools, distributed energy resource
management systems used to control local generation and
storage, and advanced distribution management systems used as
the software platform to provide core system functions such
as fault location, isolation, and service restoration,
voltage optimization, and peak demand management,
``(ii) is developed with information assurance techniques
to support encrypted communication, attributed identity, and
non-repudiation, and
``(iii) is approved for purposes of this section by the
Secretary (in consultation with the Secretary of Energy).
``(C) Qualified automated distribution device.--The term
`qualified automated distribution device' means any automated
device which--
``(i) is used for distributing electricity through the
electric grid, including property integral to local or
centralized control systems, such as distribution sensors,
communication security equipment (including communication
encryption devices), automated switches, automated threat
detection and remediation devices, system protective devices,
smart inverters, and other property used to coordinate and
control devices across the system, and
``(ii) is approved for purposes of this section by the
Secretary (in consultation with the Secretary of Energy).
``(D) Advanced voltage control systems.--The term `advanced
voltage control system' means any property which--
``(i) is used to provide accurate and dynamic voltage
control, including voltage regulators, capacitors, inverters,
sensors, and communication devices, and
``(ii) is approved for purposes of this section by the
Secretary (in consultation with the Secretary of Energy).
``(E) Advanced metering infrastructure.--The term `advanced
metering infrastructure' means any property which--
``(i) provides both the capability to measure services
consumed from the utility and a two-way communication pathway
between the utility control center and the meter, and
``(ii) is approved for purposes of this section by the
Secretary (in consultation with the Secretary of Energy).
``(F) Advanced and secure transmission system
technologies.--The term `advanced and secure transmission
system technologies' means any property which--
``(i) increases that efficiency, security, and reliability
of a transmission facility, but not the main transmission
property, and
``(ii) is approved for purposes of this section by the
Secretary (in consultation with the Secretary of Energy).''.
(2) List of approved property.--
(A) In general.--Not later than 1 year after the date of
the enactment of this Act, the Secretary of the Treasury (or
the Secretary's delegate), in consultation with the Secretary
of Energy, shall publish a list of property approved as grid
security and modernization property under section 48(c)(5) of
the Internal Revenue Code of 1986, as added by this
subsection.
(B) Updates.--The Secretary of the Treasury (or the
Secretary's delegate), in consultation with the Secretary of
Energy, shall revise the list published under subparagraph
(A) not less frequently than every 3 years.
(d) Effective Date.--The amendments made by this section
shall apply to periods after the date of the enactment of
this Act, in taxable years ending after such date, under
rules similar to the rules of section 48(m) of the Internal
Revenue Code of 1986 (as in effect on the day before the date
of the enactment of the Revenue Reconciliation Act of 1990).
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