### Question
How is the term qualified smart electric grid system defined?


### Answer
The term **qualified smart electric grid system** is defined in *26 U.S.C. § 168* as the following:

> 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

#### 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**

