The Energy Storage Tax Incentive and Deployment Act would establish an investment tax credit (ITC) for energy storage used at businesses or homes. This will help make energy storage technologies more affordable while working to make a cleaner and more reliable grid.

 


SUMMARY

This tax credit would encourage homes and businesses to install standalone energy storage technologies. This means they would receive the tax credit without having to pair the storage with a renewable resource such as solar energy. Passage would allow home and business owners to not only utilize renewable energy but also to complement its use by saving renewable generation for times when it is needed most. Not only will this help reduce electricity demand and owners’ electricity expenses, it may also decrease emissions that would otherwise be associated with use of non-renewable resources.

HISTORY

Internal Revenue Service (IRS) guidance dictates that energy storage technology may access the investment tax credit when integrated with eligible solar resources. Therefore, standalone energy storage technologies or energy storage integrated with other energy sources would not qualify for this credit. Clarifying the eligibility of energy storage for the investment tax credit creates equity across electric grid technologies, improves energy supply certainty, and supports the electric grid to provide maximum benefit to the power system and its customers.

SPECIFICS

There are two key provisions to the Energy Storage Tax Incentive and Deployment Act:

  • Amends the IRS Code of 1986 by providing tax credits for energy storage technologies
  • Technology neutral with a capacity not less than 3 kilowatt hours for residential or 5 kilowatt hours for businesses

ORIGINAL SPONSORS

House: Rep. Buchanan, Vern (R-FL-16), Rep. Doyle, Michael F. (D-PA-18), Rep. Blumenauer, Earl (D-OR-3)
Senate: Sen. Collins, Susan M. (R-ME), Sen. Schatz, Brian (D-HI), Sen. Heinrich, Martin (D-NM), Sen. Bennet, Michael F. (D-CO), Sen. Whitehouse, Sheldon (D-RI), Sen. Hirono, Mazie K. (D-HI), Sen. Smith, Tina (D-MN), Sen. Reed, Jack (D-RI), Sen. Booker, Cory A. (D-NJ), Sen. Feinstein, Dianne (D-CA), Sen. Van Hollen, Chris (D-MD), Sen. King, Angus S., Jr. (I-ME)

SUPPORT

ClearPath Action, Citizens for Responsible Energy Solutions (CRES), U.S. Energy Storage Association (ESA), Advanced Energy Economy (AEE), American Clean Power Association (ACP), American Council on Renewable Energy (ACORE), California Energy Storage Alliance (CESA), Clean Grid Alliance (CGA), Colorado Solar and Storage Association (COSSA), National Hydropower Association (NHA), New York Battery and Energy Storage Technology Consortium (NY-BEST), Sheet Metal and Air Conditioning Contractors National Association (SMACNA), Solar Energy Industries Association (SEIA).

CONGRESS.GOV LINK:

117th Congress – H.R. 1578 & S. 627

PRINTABLE SUMMARY:

Printable summary of H.R. 1684 & S. 627