### Question
How does the law define qualified smart electric grid system?


### Answer
Under *26 U.S.C. § 168*, **qualified smart electric grid system** is defined as:

> 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 16 years

#### Citation:
  - *26 U.S.C. § 168*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

