The National Electrical Manufacturers Association (NEMA) on behalf of its Energy Storage Council applauded Rep. Chris Gibson (R-NY) and Rep. Mike Thompson (D-CA) for introducing legislation to promote adoption of state-of-the-art energy storage technologies.
The Storage Technology for Renewable and Green Energy Act of 2012 (STORAGE 2012) is a set of investment tax credits to promote adoption of the spectrum of energy storage technologies. Batteries, flywheels, superconducting magnetic energy storage, and other technologies would all be eligible under the legislation.
"Storing electricity when demand is low and supplying it when consumers most need it improves the efficiency of the grid, increases reliability, and reduces the need for additional generation," said NEMA President and CEO Evan R. Gaddis. "The technologies and applications of energy storage are numerous and this bill takes great care not to pick technology winners and losers."
This bill, HR 4096, would offer a 20 percent investment tax credit to energy storage used in connection with the power grid, with no project eligible to receive more than $40 million. To promote efficiency and distributed generation in the commercial and residential markets, the bill offers a 30 percent credit (up to $1 million) for on-site application of energy storage.
Energy storage meets the needs of consumers: rate minimization due to a reduced need to invest in new generation, efficiency of grid operations, integration of renewables, lowered emissions, and energy management and security.
"The number of established players and entrepreneurs in the energy storage space displays that these technologies are both here now and have great promise for revolutionary development going forward," said Jim Creevy, NEMA director of government relations. "This bill and its Senate counterpart (S 1845) provide the U.S. with the opportunity to make this country the center of energy storage development and production."
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ReplyDeleteThe credit will allow for 30% of the cost of the eligible property to be taken as a credit against income tax. Eligible property is tangible property that is an integral part of the facility and that “originates with the taxpayer”; or, in other words is new property. Also, the basis of the property is reduced by 50% of the amount of the credit that is taken. Like the PTC, this credit will also flow through a pass-through entity, and can be carried back one year and forward 20 years.