If energy storage advocates have their way, storage will receive the same US tax benefits as does solar — an investment tax credit for new installations. Legislation to do just that was introduced in the House of Representatives late last week.
Rep. Mike Doyle, D-Pa., would create a separate energy storage infrastructure investment tax credit based on the existing tax credits for solar energy. He introduced a similar bill in the last session of Congress, as did the U.S. Senate. The senate is expected to follow suit again during this session of Congress, all to provide parity among 21st century clean energy technologies.
“We commend Congressman Doyle for his leadership in the introduction of today’s legislation, which if enacted, would immediately boost investment in the energy storage industry and create even more economic opportunity,” said Energy Storage Association Chief Executive Kelly Speakes-Backman, in a statement. “It is a simple and impactful clarification of the current investment tax credit that would ensure equitable access for standalone storage and send long-term investment signals to an industry that supports tens of thousands of jobs nationwide.”
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The investment tax credit for solar energy allows developers to deduct 30 percent of the cost of installing such systems on both residential and commercial properties. The 30 percent comes right off their federal taxes. In 2020, however, that credit is reduced to 26 percent and in 2021, it is cut to 22 percent. It would be 10 percent beyond that point — unless Congress steps in and extends it.
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