ESA, NHA, NEMA, and CRES Support Including Storage in Energy Tax Extenders

On Wednesday, February 7, the Energy Storage Association, the National Hydropower Association, the National Electrical Manufacturers Association, and Citizens for Responsible Energy Solutions asked congressional leadership to clarify eligibility of energy storage for the Investment Tax Credit in any energy tax deal that is included in current funding discussions, based on bipartisan, bicameral support for the Energy Storage Tax Incentive and Deployment Act (S. 1868 and H.R. 4649).

Read the letter here >>

If enacted, such a provision would provide U.S. companies the certainty they need to invest for the long-term, as well as to better obtain financing, scale, create jobs, and become more competitive internationally in the fast-growing global storage market. With 70,000 Americans working in energy storage today, this is a common-sense provision to ensure continuing growth of a key advanced technology sector in the U.S.

Morevoer, with many other competitor energy technologies proposed for the ITC, allowing energy storage access to the same ITC is critical to ensure a level playing field across all energy technologies. DOE Secretary Perry called energy storage the “holy grail” for its transformative impact on the electric system, and it makes no sense to bias against such an important energy technology in economic decisions.

The ITC for storage would be a tax expenditure of $310 million over 10 years, according to estimates by the Joint Committee on Taxation. Given the $4 billion of electric system operational cost savings by 2025 that an accelerated deployment of energy storage would provide, which would in turn reduce electricity rates, eligibility of storage for the ITC is a tremendous net win for American businesses and households.