Doyle Introduces Bill to Establish Investment Tax Credit for Energy Storage
WASHINGTON DC – Today, U.S. Representative Mike Doyle (D-PA-18) was joined by Representative Vern Buchanan (R-FL-16), and Representative Earl Blumenauer (D-OR-03) in introducing the Energy Storage Tax Incentive and Deployment Act. This bipartisan legislation would create a standalone investment tax credit (ITC) for energy storage technologies for utilities, businesses, and homes.
“The Energy Storage Tax Incentive and Deployment Act would encourage the use of energy storage technologies, helping us reach our climate goals and create a more resilient and sustainable future” Congressman Doyle said today after introducing the bill. “Cost-effective energy storage is essential for adding more renewable energy to the grid and will increase the resiliency of our communities. This bill would promote greater investment and research into energy storage technologies, bolster the advanced energy economy, and create more clean energy jobs.”
“New technology like large-scale battery storage, is a critical step on the path to a cleaner and more efficient energy future,” Buchanan said. “Investing in alternative energy sources has the added benefit of creating thousands of new jobs in Southwest Florida and across the country.”
"Energy storage is a critical part of the bold, comprehensive agenda that we must pursue to decarbonize our economy and address the climate emergency,” said Rep. Earl Blumenauer. “I’m glad to join Congressman Doyle in the effort to seek a once-in-a-generation opportunity to drive the growth of energy storage and take long overdue steps to save our planet.”
The Senate companion legislation was also introduced today by Senators Martin Heinrich (D – NM) and Susan Collins (R – ME) and the bill is supported by the U.S. Energy Storage Association and Citizens for Responsible Energy Solutions (CRES).
Energy storage systems often serve as complementary reserves to renewable resources like wind and solar power. They can be used to lower costs for electricity during peak demand, when energy is the most expensive, or to provide backup power during power outages. Energy storage most commonly refers to batteries, but it also includes systems such as pumped hydropower, hydrogen storage (including electrolysis), thermal energy storage, regenerative fuel cells, or superconducting magnets. The wide variety of storage options gives grid operators, businesses, and homeowners flexibility in creating short, long, or even seasonal storage resources that work best for them.
The Energy Storage Tax Incentive and Deployment Act expands the existing investment tax credit for solar energy and can apply to large, utility-scale energy storage projects or smaller battery systems for residential use. The current tax code allows an investment tax credit for energy storage when it is installed in conjunction with a solar energy system; this bill would extend the investment tax credit for energy storage investments to a wider range of applications and provide greater assurance to prospective investors.
“Without more energy storage, the United States will fail to achieve its urgent climate and clean energy goals and miss an opportunity to make power infrastructure more resilient to climate change,” said Jason Burwen, Interim CEO of the Energy Storage Association, ESA. “We urge Congress to follow the bipartisan example set today and pass this legislation to put storage on the same playing field as other clean energy technologies. If it does, we can power the economic recovery with jobs that build a cleaner, more resilient future for all.”
“Expanding investment tax credits (ITC) for energy storage is a pro-growth, no-brainer policy that will support any power generation connected to the grid—wind, solar, hydro, nuclear, gas, coal—to become more efficient, productive and competitive,” said Heather Reams, Executive Director of Citizens for Responsible Energy Solutions (CRES). “Federal tax incentives will spur significant private sector investments in energy storage, putting the full power of American innovation towards building our next-generation energy infrastructure for the future. I applaud the bi-partisan leadership of Representatives Vern Buchanan (R-FL) and Mike Doyle (D-PA) for working to give businesses and homeowners the ability to invest in energy storage solutions in a cost-effective manner. Resilient, reliable energy storage is critical to building a clean energy economy and will create good-paying American jobs.”
Click here for the text of the bill.