Bill introduced to add energy storage to Investment Tax Credit amid Democrat push to extend ITC timeline
Legislation was filed by Rep. Mike Doyle (D-PA) to modify the tax code to include energy storage as an eligible technology for the investment tax credit (ITC). Other original cosponsors of the bill include Rep. Linda Sanchez (D-CA) and Rep. Earl Blumenauer (D-OR), who both serve on the House Ways and Means Committee.
This would grant full ITC eligibility to investments in commercial, residential and utility-scale energy storage, with the same ramp-down now set for solar — 30 percent through 2019, 26 percent in 2020, and 22 percent in 2021.
“It’s clear that combining clean, reliable solar energy with effective storage is the next frontier in securing a resilient and reliable electrical grid. Encompassing multiple technologies, energy storage systems save excess energy and convert it back to electricity when most needed,” stated SEIA president and CEO Abigail Ross Hopper. “A storage ITC benefits not only solar, but also energy from a wide range of sources, helping to meet the nation’s current and new electricity demands. As we work with Congress on a range of tax policies to meet Americans’ growing demand for development and deployment of clean energy resources like solar, making energy storage ITC-eligible is an important component of those solutions.”
In addition, a letter was delivered to House Ways & Means Chairman Richard Neal (D-MA) from more than 100 House Democrats, calling for legislation on long-term tax incentives for clean energy. SEIA vice president of congressional affairs Erin Duncan had this to say:
“We applaud the more than 100 House members on this letter for their leadership,” stated Gregory Wetstone, President and CEO of the American Council on Renewable Energy (ACORE). “As the signatories note, providing long-term certainty for clean energy tax incentives would allow the U.S. to achieve its carbon reduction goals while dramatically boosting clean energy jobs, U.S. investment in electric generation and our global position as a renewable energy leader. Clarifying the tax code for energy storage technologies is also a critical piece of the puzzle that would have technology-neutral benefits.”