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House Democrats are pushing for tax incentives for clean energy and a new bill would expand the scope of energy storage facilities eligible for investment tax credit (ITC).
Representative Mike Doyle, D-Pa., Introduced Thursday a bill to extend the ITC to all energy storage technologies. At the present time, energy storage is only permissible for the ITC in certain cases when it is connected to a solar project.
Similar projects have been submitted to Congress in recent years, including the 2017 Law on Tax Incentives for Deployment and Energy Storage. Doyle HR 2096 is a more recent version of this proposal. It aims to "amend the Internal Revenue Code of 1986 in order to energy storage technologies and for other purposes. "
The Union of Concerned Scientists writes that Congress "must" pass the bill, which "aims to establish a 30% tax credit for storing commercial and residential energy up to 30%." to 2021 ", among other objectives.
Currently, solar investment tax credit can be claimed on federal income taxes up to 30% of the cost of a solar photovoltaic system. The credit is expected to start to disappear at the end of the year and fall to 26% in 2020 and 10% for commercial and utility purposes by 2022. It is expected to disappear completely for residential solar projects by 2022.
Unsurprisingly, Doyle's legislation has garnered endorsements from the Solar Energy Industries Association and the American Wind Energy Association. Tom Kiernan, CEO of the American Wind Energy Association, said:
"Like the electricity transmission lines that make up the network, energy storage is a catalytic technology that makes electricity supply more affordable and reliable. Expanding the investment tax credit eligibility for all energy storage technologies would trigger new investments in clean energy infrastructure, would create jobs in the United States and help ensure that our electricity supply is ready for the challenges ahead. "
Clean Energy Push
Doyle and more than 100 other Democrats in the House also signed a letter Thursday to House Speaker Richard Neal, representative of the House of Ways and Means, in favor of fiscal incentives for clean energy. Citing climate change and the need to rebuild the country's infrastructure, the letter reads:
"Taking into account these latest climate reports and our common interest in developing a comprehensive and thoughtful infrastructure package to support economic growth and address some of the most pressing challenges facing the country, we are asking the Committee for ways forward. and ways not to miss this opportunity. support the development of clean energy technologies. "
The signatories seek to streamline existing provisions and "stimulate investment and innovation in clean electricity, clean transport and energy efficiency". Specifically, Democrats seek fiscal policies for clean energy in future legislation or a potential set of infrastructure.
Among the objectives pursued are the pursuit of incentives for wind and solar energy, the restoration and maintenance of renewable energy credits expiring in 2017, as well as provisions aimed at reducing emissions. The signatories are also seeking clarification on the energy storage tax code and an extension of the solar CTI.
While the signatories note that many clean energy incentives have been designed for phasing out, they also write that recent developments in the US government have necessitated an adjustment:
"The latest expansion and removal of these clean energy tax credits was intended to serve as a bridge for the implementation of EPA's Clean Energy Plan (CPE), among a set of regulations and policies aimed at reduce carbon emissions. This is no longer the case. Trump administration efforts to undermine the CPP and other common sense guarantees for existing and new power plants, relax the fuel economy standards for cars and trucks, reduce emissions of powerful methane and withdraw the United States from the Paris climate agreements have fundamentally changed the framework the 2015 agreement was reached. As such, we encourage the Ways and Means Committee to maintain its tax incentives for clean energy technologies so that the United States remains on track to meet its commitments under the Paris Agreements under the United States. Obama administration.
EV Incentives
Among the clean energy incentives sought by Democrats in the House are "provisions to encourage cleaner modes of transport, including tax incentives to further accelerate market penetration of EVs and EVs". alternative fuel, such as credits 30D and 30B ".
The Dems are encouraging the revision of the delivery cap of 200,000 vehicles, which is already negatively affecting Tesla and GM. They are also looking for incentives for building a charging infrastructure.
Rep. Ro Khanna is among the Democrats to sign the letter. Khanna is expected to introduce a bill in the near future to expand the federal electric vehicle tax credit, eliminate the limit of 200,000 deliveries and tie credit to US auto manufacturing.
Electrek's Take
A tax credit for energy storage has been planned for a long time, and we hope that legislation on the subject will finally be adopted.
As for the other clean energy incentives described by House Democrats, we expect that many incentives will appear in different forms of legislation in the coming months. It will be interesting to see how they are designed and, if so, to get strong bipartite support. Khanna's proposal on EV should be presented shortly.
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