Doyle Introduces Bill Establishing Investment Tax Credit for Energy Storage
WASHINGTON DC – U.S. Representative Mike Doyle (D-PA-18) announced that he introduced the Energy Storage Tax Incentive and Deployment Act today. This legislation would expand the solar investment tax credit (ITC) to encompass energy storage technology for utilities, businesses, and homes.
“The Energy Storage Tax Incentive and Deployment Act would encourage the use of energy storage technologies and incorporating them into the national electric grid,” Congressman Doyle said today after introducing the bill. “Efficient, cost-effective energy storage is essential for transitioning to renewable energy and increasing electric grid resilience. There have been important advances in energy storage technology in recent years, and the field continues to produce rapid developments. This bill would promote greater investment and research in energy storage technologies, bolster the advanced energy economy, and create more clean energy jobs.”
Energy storage systems often serve as complementary reserves to renewable resources like wind and solar power. They can provide backup power and lower costs for electricity during peak demand, when energy is the most expensive. This technology includes equipment which receives, stores, and delivers energy using, for example, batteries, compressed air, pumped hydropower, hydrogen storage (including hydrolysis), thermal energy storage, regenerative fuel cells, flywheels, capacitors, or superconducting magnets. Energy storage ultimately makes our electric grid more sustainable and resilient, and it can help provide power when a region needs it most – like the hottest summer afternoons and the coldest winter nights. Energy storage systems are also essential for supporting the deployment of advanced grid technologies and enhancing the operation of all types of generating resources.
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 in a wider range of applications and provide greater assurance to prospective investors.
Representatives Earl Blumenauer and Linda Sanchez joined the bill as original cosponsors.
“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 CEO Kelly Speakes-Backman. “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. We thank Congressman Doyle for addressing this critical issue for the resiliency, efficiency, sustainability, and affordability of our electric system.”
Click here for the text of the bill.