ESA and a broad range of stakeholders support an Investment Tax Credit (ITC) that includes stand-alone energy storage technologies.

The bipartisan, bicameral, Energy Storage Tax Incentive and Deployment Act offers an ITC for stand-alone energy storage systems. In addition to putting storage on a level playing field with other energy technologies, an ITC will accelerate the growth of jobs and investment in the American energy storage industry, contributing to economic recovery while increasing power system resilience and accelerating decarbonization. ESA is advocating that Congress make energy storage technologies eligible for the ITC under IRC Sec. 48 and 25D, with the option to elect “direct payment.” Since tax equity is likely to become scarce in the near term, due to economic consequences from the COVID-19 pandemic, an ITC should allow businesses to reduce reliance on costly and time-consuming tax equity transactions. The ITC for stand-alone energy storage should either be refundable or allow taxpayers to elect “direct payment” of the credit as tax already paid (as in the House Ways & Means GREEN Act).

Voices of support for an ITC for stand-alone energy storage:

More information on storage ITC legislation:

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