Costello, Doyle Introduce Bipartisan Bill to Establish Investment Tax Credit for Energy Storage
Washington, D.C. – Reps. Ryan Costello (R-PA) and Mike Doyle (D-PA), members of the House Energy and Commerce Committee, introduced the bipartisan Energy Storage Tax Incentive and Deployment Act of 2017. This bill, H.R. 4649, would establish a separate investment tax credit (ITC) for energy storage infrastructure for utilities, businesses, and homes. The legislation is cosponsored by Representative Mark Takano (D-CA).
“Supporting and encouraging the use of innovative energy technologies can help lower energy costs and improve grid resiliency. When paired with recent advancements in clean and renewable energy choices, energy storage can strengthen the security of our electric grid, offer consumers greater choice, and lower the cost of energy bills,” said Rep. Costello
“This legislation encourages the use of emerging energy storage technologies and incorporating them into the electric grid. Energy storage technologies are critical to the increased adoption of renewable energy and the improvement of electric grid resilience,” said Rep. Doyle. “This bipartisan bill will facilitate greater investment and research in energy storage technologies, bolster the advanced energy economy, and support clean energy jobs across Pennsylvania.”
Energy storage systems often serve as complementary reserves to renewable resources like wind and solar power. They can provide backup power and also help lower costs for electricity during peak demand, when energy is most expensive. Energy storage ultimately makes our electric grid more sustainable and resilient, and can help provide power when we need it most – like the hottest afternoons or cold snaps in winter. Additionally, energy storage systems are integral to increasing deployment of advanced grid technologies and enhancing the operation of all types of generating resources.
The Energy Storage Tax Incentive and Deployment Act of 2017 is modeled on the existing investment tax credits 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 ITC for energy storage when it is installed in conjunction with a solar energy system; this bill would extend the ITC for energy storage investments in a wider range of applications and provide greater clarity and assurance to prospective investors.
This legislation is a companion to S.1868, an identical, bipartisan bill introduced in the Senate by Senators Heinrich (D-NM) and Heller (R-NV) earlier this year.