Investment Tax Credit for Energy Storage

The Energy Storage Association advocates for public policies to accelerate the widespread use of competitive and reliable energy storage systems. Energy storage systems are critical to modernization of the electric grid and help any generation resource connected to the grid – coal, gas, nuclear, wind, solar, hydro – become more efficient, productive, and competitive. Under current law, energy storage can only qualify for the investment tax credit (ITC) when integrated with ITC-eligible solar resources under a narrow set of conditions and subject to recapture risks.  These conditions create tremendous uncertainty for investors.

See examples of energy storage paired with diverse resources >>

ESA and our allies continue to urge passage of ITC legislation that clarifies eligibility of the full range of energy storage technologies (e.g., grid batteries, pumped hydro, etc). Clarifying eligibility of the ITC for energy storage will create a level playing field across electric grid technologies, improve business certainty, and allow energy storage to pair with any type of generation asset. Doing so will enhance grid efficiency and resilience while creating more jobs and capital formation.

LATEST ACTIONS

The Energy Storage Tax Incentive and Deployment Act of 2019 was introduced in the House (H.R. 2096) on April 4, 2019, by Representatives Doyle, Sanchez and Blumenauer and in the Senate (S. 1142) on April 11, 2019, byr Senators Heinrich and Gardner.

Download the 1-pager on Energy Storage Tax Incentive and Deployment Act of 2019 >>

On April 9, 2019, ESA alongside AEE, ACORE, AWEA, CRES, ClearPath Action, NEMA, NHA, and SEIA submitted a joint letter to House leadership urging inclusion of H.R. 2096 in energy tax legislation this session.

Read the Joint Industries April 9, 2019 Letter on H.R. 2096 >>

On April 15, 2019, ESA alongside AEE, ACORE, AWEA, CRES, ClearPath Action, NEMA, NHA, SEIA, SMACNA, CESA, and NY-BEST submitted a joint letter to Senate leadership urging inclusion of S. 1142 in energy tax legislation this session.

Read the Joint Industries April 15, 2019 Letter on S. 1142 >>