Treasury report supports tax credit for energy storage
Making standalone energy storage eligible for the Investment Tax Credit (ITC) would result in cleaner energy production and a more resilient grid, according to a report by U.S. Treasury Department.
“The Treasury Department’s report confirms that making standalone storage eligible for the ITC—just as other clean energy technologies are today—is critical for the United States to achieve its urgent climate and clean energy goals and build a more resilient grid,” Jason Burwen, interim CEO at the Energy Storage Association, said.
“We continue to urge Congress to pass bipartisan legislation that would achieve this goal and power the economic recovery by creating jobs that build a cleaner, more resilient future for all.”
President Joe Biden’s American Jobs Plan, released last week, included the ITC for storage tax credit, along with reviving the 48C manufacturing tax credit and targeted grants. More than 150 organizations sent a letter recently to leaders in Congress requesting legislation to make standalone storage projects eligible for the ITC in the upcoming infrastructure bill.
The Biden Administration’s Made in America Tax Plan says that enabling a standalone storage ITC “would advance clean electricity production by providing a ten-year extension of the production tax credit and investment tax credit for clean energy generation and storage and making those credits direct pay.
Together with non-tax initiatives, like the Energy Efficiency and Clean Electricity Standard, the plan sets the country on a path to 100 percent carbon pollution free electricity by 2035,” the report finds. “The plan further expands the tax incentives available for electricity storage projects. These incentives would help ensure that the electricity supply is reliable as well as less harmful to the climate.”
In March, Sens. Martin Heinrich (D-NM) and Susan Collins (R-ME), along with Reps. Earl Blumenauer (D-OR), Mike Doyle (D-PA), and Vern Buchanan (R-FL) introduced the Energy Storage Tax Incentive and Deployment Act (S. 627/H.R. 1684). This bill would remove limits on applying the tax credit to storage technologies only when integrated with ITC-eligible solar projects.
In ESA’s 2030 Vision, the company said 100 GW of new energy storage is needed to drive the clean energy transition and meet 21st-century demands. Currently, the United States has deployed over 3 GW of energy storage to date.
Source: dailyenergyinsider
