1. Short title This Act may be cited as the Energy Sector Innovation Credit Act of 2018 . 2. Investment credit for emerging energy technology (a) In general Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48C the following new section: 48D. Emerging energy technology credit (a) In general For purposes of section 46, the emerging energy technology credit for any taxable year is an amount equal to 30 percent of the basis of any qualified emerging energy property placed in service by the taxpayer during such taxable year. (b) Qualified emerging energy property For purposes of this section— (1) In general The term qualified emerging energy property means property which is constructed, reconstructed, erected, or acquired by the taxpayer, the original use of which commences with the taxpayer, and which is— (A) a qualified production facility (as defined in section 45T(d), determined without regard to paragraph (2) thereof) which is a tier 1 facility (as defined in section 45T(b)(2)(A)), or (B) property which is placed in service at and used in connection with an existing electric generating facility which is a point source of air pollutants to retrofit such facility and which, with respect to such facility— (i) improves conversion efficiency (as defined in section 45T(e)(2)) or energy efficiency (as defined in section 45T(e)(3)) by at least 50 percent, (ii) decreases water consumption, in the case of a type of facility which has significant water consumption, by at least 75 percent, or (iii) as recognized by the Environmental Protection Agency pursuant to its enforcement of the Clean Air Act ( 42 U.S.C. 7401 et seq.) or by administrative action, reduces, sequesters, or controls by at least 50 percent the emission of air pollutants which can be reasonably anticipated to endanger public health or welfare. (2) Denial of double benefit Such term shall not include— (A) any property which, (B) property any portion of which, or (C) property placed