Letter from 37 energy companies, associations requests Congressional clarification on energy storage eligibility
Eying the Investment Tax Credit, 37 companies and associations–the Energy Storage Association among them–wrote to Congress this week in a push for legislative clarification of energy storage eligibility in the Investment Tax Credit (ITC).
The IRS has previously granted private letter rulings and administrative guidance alike denoting energy storage equipment as eligible for tax credits under Section 48 of the tax code. However, the coalition of companies and associations noted that there remains no clear statutory guidance, leading to uncertainty overall.
“If enacted, this bill would increase business certainty, expand access to new private investment, and ensure U.S. energy storage companies scale, create jobs, and become more competitive internationally in the global storage market,” the organizations wrote.
Calling energy storage systems critical to modernization of the electric grid, they also pointed to statements from the National Governors Association that have likewise pushed the issue of energy storage. Stepping back from any controversy over types of electric generation, they also noted energy storage capabilities as an industry supportive, yet inherently neutral item.
“Energy storage systems are also fuel-neutral and help any generation resource connected to their grid–coal, gas, nuclear, wind, solar, hydro–become more efficient, productive, and competitive,” the organizations wrote.
They hope to see all storage technologies, from batteries to compressed air, made eligible for the ITC.
