The Energy Storage Association (ESA) recently issued a statement thanking U.S. Sens. Tim Scott (R-SC) and Michael Bennet (D-CO) for their efforts to obtain clarification on the eligibility of energy storage for the Investment Tax Credit (ITC).
The Investment Tax Credit is currently a 30 percent federal tax credit claimed against the tax liability of residential and commercial and utility investors in solar energy property.
The senators sent a letter on Sept. 20 to Treasury Secretary Steven Mnuchin seeking clarification on the eligibility of energy storage technologies under Internal Revenue Code Section 48 when energy storage is added to an existing ITC-eligible technology. The senators requested that the clarification be included in the IRS’ 2018-2019 Priority Guidance Plan.
“By making these clarifications the IRS can ensure the full utilization of these domestic energy resources, thereby maximizing the public benefit of the tax incentive and bolstering grid reliability and energy security for the future,” the senators wrote.
Kelly Speakes-Backman, chief executive officer of ESA agreed, stating, “Timely issuance of proposed regulations is an important step to stabilize the investment environment, which will accelerate the industry’s work to build a more resilient, efficient, sustainable and affordable electricity grid.”
ESA sent a letter to Assistant Secretary of the Treasury for Tax Policy and IRS Acting Commissioner David Kautter on Sept. 5 requesting the same clarification. “Current ambiguity on the Section 48 property definition, particularly the treatment of integrated energy storage equipment, presents continuing uncertainty for our industry members and their investors,” ESA wrote.
The organization also noted that it has been working with the Solar Energy Industries Association (SEIA) to communicate the importance of the clarification.
“We are pleased that Sen. Scott and Sen. Bennet also see the importance of this issue, and we ask Secretary Mnuchin and Assistant Secretary Kautter to act on their bipartisan request,” ESA said.
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