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:
- Sen. Gardner (R-CO), Sen. Collins (R-ME), & Sen. Heinrich (D-NM) July 2019 letter to Congressional leadership >>
- Joint clean energy industries April 2019 letter of support >>
- California state legislators Aug 2019 letter to Speaker Pelosi >>
- Massachusetts state legislators Sep 2019 letter to House Ways & Means Chair Neal >>
- Northeastern clean energy industries June 2019 letter of support >>
- National environmental organizations April 2019 letter of support >>
- Senate Democrats March 2019 letter to Minority Leader Schumer >>
- Letters of support in the Senate Finance Energy Task Force Aug 2019 report >>
- Joint faith-based organizations’ September 2019 letter of support
- Letter from local and state officials nationwide in support of clean energy tax incentives