Democratic Congressman Mike Doyle has introduced a proposal to the US House of Representatives that would create an investment tax credit for energy storage projects.
The Energy Storage Tax Incentive and Deployment Act aims to modify the tax code to make energy storage an eligible technology for the ITC.
It is co-sponsored by two other Democrats Linda Sanchez and Earl Blumenauer.
Current law only allows energy storage to qualify for an ITC when paired with a solar project under certain circumstances.
The American Wind Energy Association (AWEA) welcomed Doyle’s proposal.
It said the flexibility and market efficiencies resulting from accelerated energy storage investment would spur new wind farm development and job creation.
AWEA chief executive Tom Kiernan said: “We applaud Representative Doyle for his effort to modernize the US electricity supply with the Energy Storage Tax Incentive and Deployment Act,” said
“Like the power transmission lines that make up the grid, energy storage is a catalyst technology that makes the entire electricity supply more affordable and reliable.
“Expanding investment tax credit eligibility to all energy storage technologies would spark new clean energy infrastructure investment, grow American jobs, and help ensure our electricity supply is ready for future challenges.
The Solar Energy Industries Association also applauded the legislation.
SEIA president Abigail Ross Hopper said: “We congratulate Rep Doyle for introducing this critical legislation. It’s clear that combining clean, reliable solar energy with effective storage is the next frontier in securing a resilient and reliable electrical grid.
“Encompassing multiple technologies, energy storage systems save excess energy and convert it back to electricity when most needed.
“A storage ITC benefits not only solar, but also energy from a wide range of sources, helping to meet the nation’s current and new electricity demands.
“As we work with Congress on a range of tax policies to meet Americans’ growing demand for development and deployment of clean energy resources like solar, making energy storage ITC-eligible is an important component of those solutions.”