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136 STAT. 1915 PUBLIC LAW 117–169—AUG. 16, 2022 (2) APPLICATION OF 6 PERCENT CREDIT.—Section 48(a)(2)(A)(i) is amended by striking ‘‘and’’ at the end of sub- clauses (IV) and (V) and adding at the end the following new subclauses: ‘‘(VI) energy storage technology, ‘‘(VII) qualified biogas property, ‘‘(VIII) microgrid controllers, and ‘‘(IX) energy property described in clauses (v) and (vii) of paragraph (3)(A), and’’. (3) DEFINITIONS.—Section 48(c) is amended by adding at the end the following new paragraphs: ‘‘(6) ENERGY STORAGE TECHNOLOGY.— ‘‘(A) IN GENERAL.—The term ‘energy storage technology’ means— ‘‘(i) property (other than property primarily used in the transportation of goods or individuals and not for the production of electricity) which receives, stores, and delivers energy for conversion to electricity (or, in the case of hydrogen, which stores energy), and has a nameplate capacity of not less than 5 kilowatt hours, and ‘‘(ii) thermal energy storage property. ‘‘(B) MODIFICATIONS OF CERTAIN PROPERTY.—In the case of any property which either— ‘‘(i) was placed in service before the date of enact- ment of this section and would be described in subpara- graph (A)(i), except that such property has a capacity of less than 5 kilowatt hours and is modified in a manner that such property (after such modification) has a nameplate capacity of not less than 5 kilowatt hours, or ‘‘(ii) is described in subparagraph (A)(i) and is modified in a manner that such property (after such modification) has an increase in nameplate capacity of not less than 5 kilowatt hours, such property shall be treated as described in subparagraph (A)(i) except that the basis of any existing property prior to such modification shall not be taken into account for purposes of this section. In the case of any property to which this subparagraph applies, subparagraph (D) shall be applied by substituting ‘modification’ for ‘construction’. ‘‘(C) THERMAL ENERGY STORAGE PROPERTY.— ‘‘(i) IN GENERAL.—Subject to clause (ii), for pur- poses of this paragraph, the term ‘thermal energy stor- age property’ means property comprising a system which— ‘‘(I) is directly connected to a heating, ventila- tion, or air conditioning system, ‘‘(II) removes heat from, or adds heat to, a storage medium for subsequent use, and ‘‘(III) provides energy for the heating or cooling of the interior of a residential or commercial building. ‘‘(ii) EXCLUSION.—The term ‘thermal energy stor- age property’ shall not include— ‘‘(I) a swimming pool, Applicability. 26 USC 48. VerDate Sep 11 2014 13:57 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00099 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw