SEC. 306. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF SMART METERS AND SMART GRID SYSTEMS. (a) IN GENERAL.—Section 168(e)(3)(D) is amended by striking ‘‘and’’ at the end of clause (i), by striking the period at the end of clause (ii) and inserting a comma, and by inserting after clause (ii) the following new clauses: ‘‘(iii) any qualified smart electric meter, and ‘‘(iv) any qualified smart electric grid system.’’. (b) DEFINITIONS.—Section 168(i) is amended by inserting at the end the following new paragraph: ‘‘(18) QUALIFIED SMART ELECTRIC METERS.— ‘‘(A) IN GENERAL.—The term ‘qualified smart electric meter’ means any smart electric meter which— ‘‘(i) is placed in service by a taxpayer who is a supplier of electric energy or a provider of electric energy services, and ‘‘(ii) does not have a class life (determined without regard to subsection (e)) of less than 10 years. ‘‘(B) SMART ELECTRIC METER.—For purposes of subparagraph (A), the term ‘smart electric meter’ means any time- based meter and related communication equipment which is capable of being used by the taxpayer as part of a system that— ‘‘(i) measures and records electricity usage data on a time-differentiated basis in at least 24 separate time segments per day, ‘‘(ii) provides for the exchange of information between supplier or provider and the customer’s electric meter in support of time-based rates or other forms of demand response, ‘‘(iii) provides data to such supplier or provider so that the supplier or provider can provide energy usage information to customers electronically, and ‘‘(iv) provides net metering. ‘‘(19) QUALIFIED SMART ELECTRIC GRID SYSTEMS.— ‘‘(A) IN GENERAL.—The term ‘qualified smart electric grid system’ means any smart grid property which— ‘‘(i) is used as part of a system for electric distribution grid communications, monitoring, and management placed in service by a taxpayer who is a supplier of electric energy or a provider of electric energy services, and ‘‘(ii) does not have a class life (determined without regard to subsection (e)) of less than 10 years. ‘‘(B) SMART GRID PROPERTY.—For the purposes of subparagraph (A), the term ‘smart grid property’ means electronics and related equipment that is capable of— ‘‘(i) sensing, collecting, and monitoring data of or from all portions of a utility’s electric distribution grid, ‘‘(ii) providing real-time, two-way communications to monitor or manage such grid, and ‘‘(iii) providing real time analysis of and event prediction based upon collected data that can be used to improve electric distribution system reliability, quality, and performance.’’. (c) CONTINUED APPLICATION OF 150 PERCENT DECLINING BALANCE METHOD.—Paragraph (2) of section 168(b) is amended by striking ‘‘or’’ at the end of subparagraph (B), by redesignating subparagraph (C) as subparagraph (D), and by inserting after subparagraph (B) the following new subparagraph: ‘‘(C) any property (other than property described in paragraph (3)) which is a qualified smart electric meter or qualified smart electric grid system, or’’. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.