PRIA Logo™
119-s-5453119th CongressWALLET

Grid Resiliency Tax Credit Act

Sponsored By: Senator Heinrich, Martin [D-NM]

Introduced

Summary

This bill would create a 30% investment tax credit for regionally significant electric transmission lines to accelerate buildout and boost grid resilience. It targets large cross‑boundary projects and high‑voltage generator tie lines to expand capacity, improve reliability, and support diverse generation access.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

New 30% tax credit for transmission

If enacted, the bill would create a new investment tax credit equal to 30% of your qualified investment for eligible transmission lines. The credit would apply for taxable years beginning after December 31, 2026 and to property placed in service or expenditures made after that date. The bill would use older progress‑expenditure timing rules, bar double‑dipping with existing energy credits under sections 48 or 48E, and exclude projects whose construction begins after December 31, 2036. The credit would be made transferable and eligible for an elective direct payment from Treasury, and elected payments tied to this credit would be exempt from sequestration; Federal power marketing agencies would be included among eligible recipients.

What costs count for the credit

If enacted, the bill would define "qualified investment" for the new credit as two things. First, the basis of qualified property you place in service during the taxable year that is part of the qualified line. Second, expenditures you pay or incur to build, reconstruct, erect, or modify qualified substation property needed to connect the line. "Qualified property" would be depreciable tangible equipment integral to the line (for example, conductors, towers, transformers, converters, breakers), and would exclude buildings and structural components. These rules would apply to property placed in service after December 31, 2026.

Which transmission projects qualify

If enacted, the bill would define which electric transmission lines can get the new credit. A "qualified electric power transmission line" would be either a "significant" line or a generator tie line. Significant lines would generally need at least 500 megawatts of capacity and to cross a State line, cross two or more planning subregions from the most recent FPA study, lie on the Outer Continental Shelf, or be at least 100 continuous miles. Significant lines must meet voltage and conductor tests (for example, AC ≥ 345 kV or DC ≥ 200 kV, able to transmit at least 100 kV, and use an advanced conductor with ≥ 60% ampacity improvement vs an ACSR baseline, DC resistance ≤ 90% of that baseline, and no greater sag). Generator tie lines would need to be at least 230 kilovolts and mainly connect or expand new generation or storage. Lines must be placed in service after December 31, 2026, with limited transition rules for certain capacity-increasing modifications.

Utility depreciation for transmission lines

If enacted, the bill would add qualified electric power transmission lines to the definition of public utility property for depreciation rules. That would let utilities and covered taxpayers use the public‑utility depreciation framework for those lines. The bill would also make parallel references so energy storage and qualified lines are treated consistently. These changes would apply to property placed in service after December 31, 2026 and could change how fast utilities recover construction costs for tax purposes.

Sponsors & CoSponsors

Sponsor

Heinrich, Martin [D-NM]

NM • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation