### Question
How does the law define smart grid property?


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

> 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

#### 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**

