H.R. 5523
H.R. 5523
Sponsor:
- Rep. Reed, Tom (R-NY-23)
- Rep. Panetta, Jimmy (D-CA-20)
- Rep. LaHood, Darin (R-IL-18)
- Rep. Suozzi, Thomas R. (D-NY-3)
- Rep. Gottheimer, Josh (D-NJ-5)
- Rep. Schweikert, David (R-AZ-6)
- Rep. Amodei, Mark E. (R-NV-2)
- Rep. McHenry, Patrick T. (R-NC-10)
- Rep. Stefanik, Elise M. (R-NY-21)
Co-sponsor:
- Rep. Bacon, Don (R-NE-2)
Introduced:
- 12/19/19
WHAT IT IS
The Energy Sector Innovation Credit creates tax incentives for breakthrough power generation and storage technologies across the clean energy spectrum. The bill would establish a single incentive system for promising new power technologies. For each technology, the incentive automatically ramps down as individual technologies scale up. Unlike traditional energy credits that define eligibility based on individual technology type (e.g. small wind, solar, advanced nuclear), ESIC eligibility is based on ambitious technical performance criteria.
WHY WE LIKE IT
Despite our aging power grid, demonstrating novel and potentially game-changing power generation technologies is extremely difficult in the United States. The combination of tight power grid regulations, high market entry costs, and low power prices works to discourage investment into even game-changing technologies. ESIC helps overcome the initial financing hurdles associated with developing “first-of-a-kind” and nascent power generation technologies. By making the credit proportional to how much a project earns from market sales, the credit eliminates the unintended ‘negative pricing’ distortions other credits have had on power markets.
DETAILS
- A production tax credit for qualifying power generation technologies
- An investment tax credit option for qualifying “first of a kind” or very nascent power generation technologies
- An investment tax credit for energy storage projects
- No double dipping with existing energy tax incentives
ENDORSEMENTS
Bipartisan Policy Center, ClearPath Action, Southern Company, American Public Power Association, National Rural Electric Cooperative Association, United States Energy Association, Citizens for Responsible Energy Solutions, Clean Air Task Force, Energy Storage Association, The United States Nuclear Industry Council, National Electrical Contractors Association, Information Technology and Innovation Foundation