(1) In general Section 48(a)(3)(A) of the Internal Revenue Code of 1986 is amended by striking or at the end of clause (vi), by adding or at the end of clause (vii), and by adding at the end the following new clause: (viii) equipment which— (I) receives, stores, and delivers energy using batteries, compressed air, pumped hydropower, hydrogen storage (including hydrolysis), thermal energy storage, regenerative fuel cells, flywheels, capacitors, superconducting magnets, or other technologies identified by the Secretary in consultation with the Secretary of Energy, (II) has a capacity of not less than 5 kilowatt hours, and (III) receives an allocation of national megawatt capacity from the Secretary under paragraph (8) equal to the capacity of such equipment. . (2) 30- P ercent credit Section 48(a)(2)(A)(i)(II) of such Code is amended by striking paragraph (3)(A)(i) and inserting clause (i) or (viii) of paragraph (3)(A) . (3) National limitation relating to energy storage property Section 48(a) of such Code is amended by adding at the end the following new paragraph: (8) National limitation relating to energy storage property (A) In general The aggregate amount of national megawatt capacity limitation allocated by the Secretary to equipment described in paragraph (3)(A)(viii) shall not exceed 10,000 megawatts. (B) Allocation of limitation The Secretary shall allocate the national megawatt capacity limitation in such manner as the Secretary may prescribe, with a focus on diversity of technological design. (C) Regulations Not later than 6 months after the date of the enactment of this paragraph, the Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this paragraph. Such regulations shall provide a process under which the Secretary, after consultation with the Secretary of Energy, shall allocate the national megawatt capacity limitation. . (b) Transfer of energy credit by certain public entities Section 48 of such Code is amended by adding at the end the