Collins, Heinrich Introduce Bipartisan Legislation To Establish Investment Tax Credit For Energy Storage
Washington, D.C. — U.S. Senators Susan Collins (R-ME) and Martin Heinrich (D-NM) introduced the Energy Storage Tax Incentive and Deployment Act to establish an investment tax credit (ITC) for business and home use of energy storage. The bipartisan bill is co-sponsored by Senator Angus King (I-ME).
The legislation modifies the existing investment tax credits (ITC) for solar energy to include a modest ITC for deployment of energy storage. The storage ITC mirrors the existing ITCs for solar energy in both commercial and residential applications. There is currently no separate ITC available for energy storage systems.
“Energy storage technology holds great promise in the fight against climate change. Supporting current technology and advancing next-generation energy storage will allow us to integrate more renewables, and in turn, will help to reduce emissions,” said Senator Collins. “Last year, the BEST Act I authored with Senator Heinrich to advance energy storage technology was signed into law, and this bipartisan bill would build on that successful effort by establishing an investment tax credit for energy storage.”
“Innovative energy storage technologies can improve the efficiency, reliability and resilience of our electric delivery systems that power homes and businesses. Over the last few years, storage technology has dramatically reduced costs while increasing our ability to manage grid supply and demand,” said Senator Heinrich. “The deployment of energy storage needs to be at the center of our ongoing effort to move toward a cleaner and more reliable electrical grid. This bipartisan bill will make it easier and more affordable to utilize energy storage technologies that will strengthen the renewable energy sector and support the thousands of clean energy jobs in New Mexico.”
“Without more energy storage, the United States will fail to achieve its urgent climate and clean energy goals and miss an opportunity to make power infrastructure more resilient to climate change,” said Jason Burwen, Interim CEO of the U.S. Energy Storage Association. “We urge Congress to follow the bipartisan example set today and pass this legislation to put storage on the same playing field as other clean energy technologies. If it does, we can power the economic recovery with jobs that build a cleaner, more resilient future for all.”
“Expanding investment tax credits (ITC) for energy storage is a pro-growth, no-brainer policy that will support any power generation connected to the grid—wind, solar, hydro, nuclear, gas, coal—to become more efficient, productive and competitive. Federal tax incentives will spur significant private sector investments in energy storage, putting the full power of American innovation towards building our next-generation energy infrastructure for the future. I applaud the bi-partisan leadership of Senators Susan Collins (R-ME) and Martin Heinrich (D-NM) for working to give businesses and homeowners the ability to invest in energy storage solutions in a cost-effective manner. Resilient, reliable energy storage is critical to building a clean energy economy and will create good-paying American jobs,” said Heather Reams, Executive Director, Citizens for Responsible Energy Solutions (CRES).
Energy storage complements intermittent renewable resources, such as wind and solar to increase full-time availability, provide backup power in case of emergencies, and help reduce the need for high-cost power during periods of peak demand.
The proposed tax incentives are modeled on the current ITCs for solar energy and apply to either large, grid-connected energy storage systems or to smaller battery systems for residential power. Home battery storage, coupled with a small wind or roof-top solar system, could be used to store energy during the day for use later in the day or during overcast skies and to help consumers reduce their energy bills.
Led by Senators Collins and Heinrich and co-sponsored by Senator King, the bill is also co-sponsored by Senators Brian Schatz (D-HI), Michael Bennet (D-CO), Sheldon Whitehouse (D-RI), Mazie Hirono (D-HI), Tina Smith (D-MN), Jack Reed (D-RI), Cory Booker (D-NJ), Dianne Feinstein (D-CA), and Chris Van Hollen (D-MD).
Last year, legislation authored by Senators Collins, Heinrich, and Smith to accelerate the development of next-generation energy storage was signed into law.
