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Energy Storage Tax Incentive Means Potential Jobs

Dec 12, 2018

 

Electrical Power-492155334 300x173SMACNA joined nearly 200 companies and like-minded associations that together, employ hundreds of thousands of people to urge the U.S. Senate and U.S. House leaders to support the Energy Storage Tax Incentive and Deployment Act (S. 1868 & H.R. 4649).

Further, the coalition asked the Congressional leadership to support inclusion of storage investment tax credits (ITC) as part of the forthcoming energy tax extenders legislation expected to see action before adjournment of the 115th Congress.  By including an ITC for storage technology would ensure a level playing field for energy storage and create jobs when energy storage capacity is combined with combined heat and power (CHP) and waste heat to power (WHP) systems often installed on commercial, industrial and public facilities such as hospitality, medical and manufacturing facilities where SMACNA contractors are often involved. S. 1868 / H.R. 4649, if enacted, would put the energy storage technology on a level playing field with all other energy production and efficiency resources currently eligible for the investment tax credits (ITC).

Energy storage systems are critical to accelerating the pace of modernization, sustainability and survivability of the electric grid and help any generation resource connected to the grid – coal, gas, nuclear, wind, solar, hydro – become more efficient, productive, and competitive. According to the energy storage ITC coalition, “there is bipartisan, bicameral support for this common-sense bill, that would ensure that America’s power system is more reliable, resilient, and cost-effective with energy storage.”

The organizations emphasized the vital need for legislation and/or clear statutory rules, in a media and legislative education effort focused upon the Speaker of the House Paul Ryan (R-Wisc.), Democratic Leader Nancy Pelosi (D-Calif.), Majority Leader Mitch McConnell (R-Ky.), Democratic Leader Charles Schumer (D-N.Y.).

The coalition expressed that they “face continuing uncertainty from IRS guidance about the eligibility of energy storage equipment for Section 48 & 25D tax credits when paired with ITC-eligible resources. Additionally, energy storage equipment provides the same energy supply services whether it is integrated with ITC-eligible technologies, like solar power, or whether it is paired with other energy resources like natural gas generation, wind power, nuclear plants, hydropower, building systems, or electric grid infrastructure.”

The group encouraged House and Senate leaders to support the legislative and regulatory expansion of the ITC to invigorate investment in energy storage. Passing S. 1868 / H.R. 4649 offers Congress a simple but important path toward greater business capital formation and energy efficiency investment to while also growing construction and manufacturing jobs. Industry leaders also predict a greater use of the storage ITC would make America’s power system more reliable, resilient, and cost-effective. Read more...