Failing to create an investment tax credit as part of the ongoing tax extenders legislation, a coalition of clean energy trade bodies in the US have urged.
As it stands, this year’s tax extenders will add a further year to wind power’s Production Tax Credit, but calls for the bipartisan Energy Storage Tax Incentive and Deployment Act (H.R. 2096) to be rolled in have been ignored.
Writing to Representative Richard Neal (D-MA), chairman of the Committee on Ways & Means, the group said the storage ITC offered a short-term jobs boost and a contribution to addressing the climate crisis.
“While members of the Democratic caucus debate how to address the climate crisis, the Ways & Means Committee has an opportunity to take a significant step forward by incorporating clean energy tax credits into forthcoming legislation,” the letter dated June 18 reads.
Enjoy 12 months of exclusive analysis
- Regular insight and analysis of the industry’s biggest developments
- In-depth interviews with the industry’s leading figures
- Annual digital subscription to the PV Tech Power journal
- Discounts on Solar Media’s portfolio of events, in-person and virtual
Or continue reading this article for free
“H.R. 2096 will ensure a level playing field for energy storage as a standalone asset alongside all other energy resources made eligible for Section 48 & 25D investment tax credits (“ITC”). Resolving the uncertainty facing companies who seek to utilize the ITC for energy storage will not only spur greater investment and create jobs among a diversity of industries, but also it will accelerate the U.S. transition to zero-carbon electric supply.
“We encourage you to not miss this opportunity. Fixing ITC eligibility for standalone energy storage is among the nearest-term opportunities to advance clean energy in this Congress.”
The letter was sent on behalf of American Council on Renewable Energy (ACORE), American Wind Energy Association (AWEA), Energy Storage Association (ESA), National Hydropower Association (NHA), Northeast Clean Energy Council (NECEC), RENEW Northeast and the Solar Energy Business Association of New England (SEBANE).
