The US Treasury and Internal Revenue Service (IRS) have finalised the rules and process for the 45X advanced manufacturing tax credit, which effectively provides a subsidy to domestic clean energy technology manufacturing, including batteries.
Transferability and the Inflation Reduction Act (IRA) have opened up tax equity financing to the wider corporate world, but significant risks remain with so many new entrants, tax credits specialist Foss & Company told Energy-Storage.news.
Battery energy storage system (BESS) developer-operator Plus Power has received a US$82 million tax equity investment from bank Morgan Stanley for an Arizona project.
The New York City Industrial Development Agency (NYCIDA) has approved five BESS projects while governor Kathy Hochul has announced groundbreaking on a sixth, all in all totalling around 42.5MW of capacity.
The CFO of Goldman Sachs-backed US battery storage developer-operator GridStor discussed its recent investment tax credit (ITC) transfer deal for a California BESS project, highlighting some downsides as well as positives from the new mechanism.
The US government has announced US$4 billion in tax credits for over 100 projects under the Qualifying Advanced Energy Project Tax Credit (48C) scheme.
Energy storage investment tax credits (ITC) were priced more highly than any other clean energy type in transferability transactions last year, according to a report from tax credit ecosystem Crux which its CEO discussed with Energy-Storage.news.
Blackstone and Foss & Company have completed transferability investment tax credit (ITC) deals for BESS projects in California and Texas, a market which has grown “faster than anyone expected” according to tax credit ecosystem Crux.
More detailed proposed regulations around the US government’s 45X tax credit for domestic clean energy manufacturing have been released, clarifying what battery components and materials qualify.
