Rep. Reed sponsors bill to foster new energy technologies
Rep. Tom Reed (R-NY) introduced legislation last week to create a tax incentive for new and innovative energy technologies.
The Energy Sector Innovation Credit Act is designed to encourage cutting-edge technologies to the sector.
The tax credit is technology neutral. It applies to the value of the energy when it is sold, so unneeded power is not rewarded. It also guarantees the tax credit is phased out over time to prevent taxpayers from propping up unprofitable or inefficient energy technologies. The tax credit also scales down as production scales up. Further, it ensures energy technologies cannot claim existing incentives along with this proposed tax credit.
“The United States is falling behind in energy innovation because the size and the complexity of the energy market stymies American ingenuity and entrepreneurship,” Reed said. “The Energy Sector Innovation Credit Act encourages cutting-edge energy technologies to break into the market, and it keeps government from picking winners and losers so all innovative, efficient energy technologies can succeed.”
Rep. Darin LaHood (R-IL) said it would incentivize innovation for new energy technologies.
“Facilitating the expansion of cutting-edge energy technologies into the marketplace in a fair and fiscally responsible way is aimed at providing a cheaper, more reliable energy portfolio. This new incentive will strengthen our country’s economic competitiveness, as well as reinforce our leadership in global energy innovation,” LaHood said.
ClearPath Action Executive Director Rich Powell added that it would help clean energy sector innovation be more like Silicon Valley – “fast, disruptive, exciting and good for consumers.”
