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A coalition of renewable energy proponents dispatched a joint letter

A coalition of renewable energy proponents dispatched a joint letter this week to both sides of Congressional leadership, urging them to clarify the eligibility of energy storage operations for the federal Investment Tax Credit (ITC) before the end of the year.

A coalition of renewable energy proponents dispatched a joint letter this week

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Such operations are critical to grid modernization, the letter noted, and this uncertainty puts an added burden on more than 90,000 U.S. jobs.

“Without clear statutory rules, energy storage industry members face continuing uncertainty from IRS guidance about the eligibility of energy storage equipment for Section 48 and 25 tax credits when paired with ITC-eligible resources,” the letter stated. “Additionally, energy storage equipment provides the same services whether or not it is integrated with ITC-eligible resources, although ITC eligibility for stand-alone systems is not clear. If enacted, this language would allow a diversity of U.S. companies to better obtain financing, scale, create jobs, and become more competitive internationally in the fast-growing global storage market.”

Fairness is also a factor. Proponents point out that competitor energy technologies are likewise seeking approval for the ITC, allowing energy storage the same access would guarantee a level competition, rather than a handicapped one.

“The framework for such action has already garnered significant bipartisan, bicameral support in this Congress through the introduction of legislation titled Energy Storage Tax Incentive and Deployment Act (S. 1868 and H.R. 4649),” Kelly Speakes-Backman, CEO of the Energy Storage Association (ESA), said. “If enacted, U.S. companies would gain the certainty needed for long-term investment, creating jobs and solidifying the industry’s competitiveness in the global market.”

Signatories include the ESA, Advanced Energy Economy, American Wind Energy Association, Citizens for Responsible Energy Solutions, ClearPath Action, National Electrical Manufacturers Association, National Hydropower Association, and Solar Energy Industries Association.

The post Renewable energy proponents press Congressional leadership for energy storage clarification in ITC appeared first on Daily Energy Insider.

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