ACORE releases report on benefits of transmission investment tax credit
The American Council on Renewable Energy (ACORE) released a report last week that outlines the benefits of a transmission investment tax credit (ITC).
The report was released during a webinar, which featured U.S. Sen. Martin Heinrich (D-NM) and U.S. Rep. Steven Horsford (D-NV) as speakers. The tax credit has been proposed in the U.S. Senate and House of Representatives and included in the Biden administration’s American Jobs Plan.
According to the report, a transmission ITC would create upwards of 650,000 jobs, enable an additional 30,000 megawatts of renewable energy capacity, spur more than $15 billion in private capital investment in the near term, and provide $2.3 billion in energy cost savings for the lower 80 percent of income brackets.
“Expanding and modernizing our nation’s outdated electric grid is essential to reducing carbon emissions, but we aren’t yet building nearly enough of the large-scale transmission projects we know we’ll need as we enter a critical period for decarbonizing our economy and accelerating the transition to renewable energy,” ACORE President and CEO Gregory Wetstone said. “A transmission ITC is the best way to incentivize the construction of high-voltage transmission lines, and I applaud Sen. Heinrich and Rep. Horsford for championing this important proposal in Congress. A rapid expansion of large-scale transmission infrastructure is not just a prerequisite to meeting our ambitious climate goals.”
The report posits that there is currently no other functioning means of funding critically needed large-scale regional and interregional transmission in the United States. The authors said expanding transmission benefits domestic manufacturing, yields public health and environmental justice benefits, improves grid reliability and resilience, and generates carbon emissions reductions.
“I am thrilled that President Biden’s American Jobs Plan calls for investments in the transmission infrastructure our country needs to fully realize our clean energy potential,” Heinrich said. “That includes my proposal to establish a transmission investment tax credit to encourage private investment in this critical infrastructure. Only once we site and build new transmission lines can we truly rewrite the map of our energy landscape to move clean electrons to market and bring many, many more utility-scale clean energy projects onto the grid. I am committed to doing all I can to get the American Jobs Plan across the finish line. This is our once-in-a-generation opportunity to act on climate and create millions of new jobs.”
The report, the Investment Tax Credit for Regionally Significant Electricity Transmission Lines: A Description and Analysis, was commissioned by ACORE in collaboration with Grid Strategies.
“The release of today’s report from the American Council on Renewable Energy (ACORE) demonstrates the widespread benefits of a transmission ITC for our economy, environment, and electrical grid,” Horsford said. “I have been proud to work closely with Senator Heinrich to advance a transmission ITC in Congress, and I am glad to see our legislation included in President Biden’s American Jobs Plan. Investing in transmission will create jobs, lower energy costs, and help the United States meet our ambitious clean energy goals.”
