,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #bdhb  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #ac1 #bjba ,mr4
 ,panetta introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,ways &      
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to provide tax    
cr$its = microgrid prop]ty4  #a4 ,%ort  
title ,?is ,act may be cit$ z ! ,mak+   
,imp]il$ ,communities ,resi/ant to      
,outages ) ,g5]ation t is ,resili5t1    
,isl&able1 & ,di/ribut$ ,act or z !     
,,microgrid ,act4  #b4 ,tax cr$its =    
microgrid prop]ty  7a7 ,9 g5]al ,subp>t 
,e ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by ins]t+ aft] section #dh;,c !   
foll[+ new section3  #dh;,d4 ,microgrid 
prop]ty  7a7 ,9 g5]al ,= purposes (     
section #df1 ! microgrid prop]ty cr$it =
 any taxable ye> is an am\nt equal to ! 
applicable p]c5tage ( ! basis ( !       
qualifi$ microgrid prop]ty plac$ 9      
s]vice by ! taxpay] dur+ su* taxable    
ye>4  7b7 ,applicable p]c5tage ,=       

purposes ( ?is section--  7#a7 ,9 g5]al 
,! t]m applicable p]c5tage means1 )     
respect to qualifi$ microgrid prop]ty   
:i* is "p ( any qualifi$ microgrid1 !   
p]c5tage det]m9$ 9 accordance ) ! foll[+
 table det]m9$ ) respect to ! cal5d> ye>
 9 :i* con/ruction ( su* qualifi$       
microgrid beg9s3 ,9 ! case ( cal5d>     
ye>3,! applicable p]c5tage is3 #bjbe or 
any prior cal5d> ye>#cj p]c5t #bjbfbf   
p]c5t #bjbgbb p]c5t #bjbhaj p]c5t4  7#b7
 ,treatm5t ( conv]sions ,9 ! case ( any 
sy/em :i* is conv]t$ into a qualifi$    
microgrid1 ! con/ruction ( su* microgrid
 %all be treat$ = purposes ( ?is        
subsection z beg9n+ on ! date on :i* su*
 conv]sion beg9s4  7c7 ,qualifi$        
microgrid prop]ty ,= purposes ( ?is     
section-- 7#a7 ,9 g5]al ,! t]m qualifi$ 
microgrid prop]ty means any qualifi$    
prop]ty--  7,a7 :i* is "p ( a qualifi$  
microgrid1  7,b7 ei!r--  7i7 !          
con/ruction1 recon/ruction1 or erection 
( :i* is complet$ by ! taxpay]1 or  7ii7
 :i* is acquir$ by ! taxpay] if !       

orig9al use ( su* prop]ty comm5ces ) !  
taxpay]1  7,c7 :i* is n "p ( a bulk-p[] 
sy/em 7z def9$ 9 section #bae ( ! ,f$]al
 ,p[] ,act 7#af ,u4,s4,c4 #hbdo771 &    
7,d7 ) respect to :i* depreciation 7or  
amortization 9 lieu ( depreciation7 is  
all[able4  7#b7 ,qualifi$ microgrid ,!  
t]m qualifi$ microgrid means an         
electrical sy/em :i*-- 7,a7 incorporates
 a microgrid controll]1  7,b7 includes  
equipm5t :i* is capable ( g5]at+ n less 
?an #d kil[atts & n great] ?an #ej      
megawatts ( electricity1  7,c7 is       
capable ( op]at+ 9 connection ) !       
electrical grid & z a s+le controllable 
entity ) respect to su* grid1 &  7,d7 is
 capable ( op]at+ indep5d5tly 7&        
disconnect$7 f su* grid4  7#c7 ,qualifi$
 prop]ty  7,a7 ,9 g5]al ,! t]m qualifi$ 
prop]ty means--  7i7 microgrid          
controll]s1 &  7ii7 electric di/ribution
 & swit*ge> prop]ty4  7,b7 ,additional  
consid]ations ,^u consultation ) !      
,secret>y ( ,en]gy1 ! ,secret>y may     
det]m9e t a qualifi$ prop]ty "u ?is     

section includes prop]ty connect$ to !  
bulk p[] sy/em 7z def9$ 9 section #bae (
 ! ,f$]al ,p[] ,act 7#af ,u4,s4,c4      
#hbdo774  7#d7 ,microgrid controll] ,!  
t]m microgrid controll] means1 ) respect
 to op]ation & isl&+ ( a qualifi$       
microgrid1 ! equipm5t :i* is necess>y to
 monitor & control ! en]gy res\rces &   
loads on su* microgrid to ma9ta9        
acceptable frequ5cy1 voltage1 or        
economic dispat*4 ,su* t]m includes any 
s(tw>e & network+ h>dw>e necess>y to !  
op]ation ( su* equipm5t4  7#e7 ,electric
 di/ribution & swit*ge> prop]ty ,! t]m  
electric di/ribution & swit*ge> prop]ty 
means1 ) respect to op]ation & isl&+ ( a
 qualifi$ microgrid1 ! equipm5t :i* is  
necess>y to deliv] electric p[] f en]gy 
res\rces on su* microgrid to loads on ! 
same su* microgrid4 ,su* t]m includes   
break]s1 fuses1 wires1 swit*ge> cab9ets 
& buss+1 p>allel+ swit*ge>1 trans=m]s1  
p[] quality correction equipm5t1 transf]
 swit*es1 disconnects1 protective       
relays1 met]+ equipm5t1 & wir$ &        

wireless communications equipm5t        
necess>y to ! op]ation ( su* microgrid4 
7#f7 ,treatm5t ( sp>e p>ts ,any qualifi$
 prop]ty :i* is held by ! taxpay] z a   
sp>e "p = possible replacem5t ( qualifi$
 prop]ty :i* is "p ( a qualifi$         
microgrid %all n fail to be treat$ z "p 
( su* microgrid = purposes ( ?is        
section4  7d7 ,special rules  7#a7      
,c]ta9 progress exp5diture rules made   
applicable ,rules simil> to ! rules (   
subsections 7c77#d7 & 7d7 ( section #df 
7z 9 effect on ! day be=e ! date ( !    
enactm5t ( ! ,rev5ue ,reconciliation    
,act ( #aiij7 %all apply = purposes (   
?is section4  7#b7 ,d5ial ( d\ble b5efit
 ,no cr$it %all be det]m9$ "u ?is       
section ) respect to ! basis ( any      
prop]ty if a cr$it is det]m9$ "u any o!r
 section ( ?is title ) respect to su*   
basis4  7e7 ,all[ance ( p]sonal cr$it = 
resid5tial microgrids ,9 ! case ( a     
qualifi$ microgrid plac$ 9 s]vice by any
 individual 9 ! resid5ce ( su*          
individual-- 7#a7 ?is section %all be   

appli$ )\t reg>d to subp>agraph 7,c7 (  
subsection 7c77#a71 &  7#b7 ! microgrid 
prop]ty cr$it det]m9$ "u ?is section =  
any taxable ye> ) respect to qualifi$   
microgrid prop]ty 7det]m9$ aft]         
application ( p>agraph 7#a77 :i* is "p (
 su* qualifi$ microgrid %all be tak5    
into acc\nt z an increase 9 ! am\nt ( ! 
cr$it o!rwise all[able to ! taxpay] "u  
section #be;,d = su* taxable ye>4  7f7  
,t]m9ation ,no cr$it %all be det]m9$ "u 
?is section ) respect to any prop]ty    
plac$ 9 s]vice aft] ,decemb] #ca1 #bjbh4
  4  7b7 ,elective paym5t ( cr$it       
,sub*apt] ,b ( *apt] #fe ( su* ,code is 
am5d$ by add+ at ! end ! foll[+ new     
section3  #fdca4 ,elective paym5t (     
microgrid prop]ty cr$it  7a7 ,en]gy     
prop]ty ,9 ! case ( an eligible p]son   
mak+ an election 7at su* "t & 9 su*     
mann] z ! ,secret>y may provide7 "u ?is 
section ) respect to any portion ( !    
cr$it det]m9$ "u section #dh;,d 7det]m9$
 )\t reg>d to subsection 7d7 ( ?is      
section7 or any portion ( ! cr$it all[$ 

"u section #be;,d by reason ( section   
#dh;,d7e7 7z s det]m9$71 su* eligible   
p]son %all be treat$ z mak+ a paym5t    
aga9/ ! tax impos$ by subtitle ,a = !   
taxable ye> equal to ! portion to :i*   
su* election applies4  7b7 ,def9itions &
 special rules ,= purposes ( ?is        
section-- 7#a7 ,eligible p]son ,! t]m   
eligible p]son means--  7,a7 any        
organization exempt f tax "u section    
#eja7;a71  7,b7 any ,/ate or local      
gov]nm5t1 or a political subdivision    
!re(1 or any ag5cy1 au?ority1 or        
in/rum5tality ( any "o or m ( ! =ego+1  
or any corporation :i* is :olly own$1   
directly or indirectly1 by any "o or m (
 ! =ego+1  7,c7 any ,indian tribal      
gov]nm5t1  7,d7 any organization        
describ$ 9 section #acha7;a77#b71 &     
7,e7 any n-=-pr(it electric utility :i* 
_h or has receiv$ a loan or loan        
gu>antee "u ! ,rural ,electrification   
,act ( #aicf4  7#b7 ,indian tribal      
gov]nm5t ,! t]m ,indian tribal gov]nm5t 
%all h ! mean+ giv5 su* t]m by section  

#aci;,e4  7#c7 ,det]m9ation ( cr$its ,! 
am\nt ( any cr$it describ$ 9 subsection 
7a7 :i* is treat$ z all[$ to any        
eligible p]son %all be det]m9$ =        
purposes ( su* subsection 9 ! same mann]
 z ?\gh su* eligible p]son 7 subject to 
! tax impos$ "u *apt] #a4  7#d7 ,tim+ ,!
 paym5t describ$ 9 subsection 7a7 %all  
be treat$ z made on--  7,a7 9 ! case (  
any gov]nm5t1 or political subdivision1 
to :i* p>agraph 7#a7 applies & = :i* no 
return is requir$ "u section #fjaa or   
#fjcc7;a71 ! lat] ( ! date t a return   
w\ld be due "u section #fjcc7;a7 if su* 
gov]nm5t or subdivision 7 describ$ 9 t  
section or ! date on :i* su* gov]nm5t or
 subdivision submits a claim = cr$it or 
refund 7at su* "t & 9 su* mann] z !     
,secret>y %all provide71 &  7,b7 9 any  
o!r case1 ! lat] ( ! due date ( ! return
 ( tax = ! taxable ye> or ! date on :i* 
su* return is fil$4  7#e7 ,waiv] (      
special rules ,9 ! case ( an election "u
 ?is section1 ! det]m9ation ( any       
applicable cr$it %all be )\t reg>d to   

p>agraphs 7#c7 & 7#d77;,a77i7 ( section 
#ej7;b74  7#f7 ,gov]nm5tal entities     
treat$ z taxpay]s ,9 ! case ( an        
election "u ?is section--  7,a7 any     
,/ate or local gov]nm5t1 or a political 
subdivision !re(1 or  7,b7 any ,indian  
tribal gov]nm5t1  %all1 to ! ext5t n a  
taxpay] z def9$ "u section              
#ggja7;a77#ad71 be treat$ z a taxpay] = 
purposes ( ?is section & det]m9+ any    
applicable cr$it4  7c7 ,exclusion f     
gross income ,gross income ( ! taxpay]  
%all be det]m9$ )\t reg>d to ?is        
section4  7d7 ,d5ial ( d\ble b5efit ,!  
cr$it o!rwise det]m9$ "u section #de;,d 
7& ! cr$it o!rwise all[$ "u section     
#be;,d by reason ( section #dh;,d7e771  
det]m9$ )\t reg>d to ?is subsection1    
%all be r$uc$ by ! am\nt ( ! portion (  
su* cr$its ) respect to :i* ! taxpay]   
makes ! election "u subsection 7a74  4  
7c7 ,con=m+ am5dm5ts  7#a7 ,section #df 
( su* ,code is am5d$ by /rik+ & at ! end
 ( p>agraph 7#e71 by /rik+ ! p]iod at ! 
end ( p>agraph 7#f7 & ins]t+ 1 &1 & by  

add+ at ! end ! foll[+ new p>agraph3    
7#g7 ! microgrid prop]ty cr$it4  4  7#b7
 ,section #di7;a77#a77;,c7 ( su* ,code  
is am5d$ by /rik+ & at ! end ( clause   
7iv71 by /rik+ ! p]iod at ! end ( clause
 7v7 & ins]t+ a comma1 & by add+ at !   
end ! foll[+ new clause3  7vi7 ! basis (
 any qualifi$ microgrid prop]ty "u      
section #dh;,d4  4  7#c7 ,section       
#ej7;a77#b77;,e7 ( su* ,code is am5d$ by
 /rik+ or #dh;,c7b77#b7 & ins]t+        
#dh;,c7b77#b71 or #dh;,d7d77#a74  7#d7  
,! table ( sections = subp>t ,e ( "p    
,,iv ( sub*apt] ,a ( *apt] #a ( su*     
,code is am5d$ by ins]t+ aft] ! item    
relat+ to section #dh;,c ! foll[+ new   
item3  ,sec4 #dh;,d4 ,microgrid prop]ty4
  4  7#e7 ,! table ( sections = sub*apt]
 ,b ( *apt] #fe ( su* ,code is am5d$ by 
add+ at ! end ! foll[+ new item3  ,sec4 
#fdca4 ,elective paym5t ( microgrid     
prop]ty cr$it4  4  7d7 ,effective date  
,! am5dm5ts made by ?is section %all    
apply to p]iods aft] ,decemb] #ca1      
#bjbj1 "u rules simil> to ! rules (     

section #dh7m7 7z 9 effect on ! day be=e
 ! date ( ! enactm5t ( ! ,rev5ue        
,reconciliation ,act ( #aiij74