From ESS News
Legislation proposed by Republicans in the US Senate would spare energy storage-related investment tax credits (ITCs) the sort of draconian cuts proposed for solar and wind generation and manufacturing sites.
Documents released by Mike Crapo, a Republican representative for Idaho and chair of the Senate’s Finance Committee, propose leaving in place advanced manufacturing tax credits for factories which make battery energy storage components.
While wind power and critical mineral manufacturing sites would see their tax credits reduced, battery component fabs would retain full tax credits through 2029, falling by 25% increments in 2030, 2031, and 2032, as introduced by previous president Joe Biden’s Green New Deal clean energy incentives package.
In terms of the 6% to 30% clean electricity ITC, for generation and energy storage sites, while the finance committee has brought forward the phasing out of credits for wind and solar projects, energy storage sites would continue to enjoy the full ITC through 2033, falling to 75% in 2034, and to 50% in 2035, before expiring in 2036, as envisioned in Biden’s legislation. The only caveats for battery ITCs would relate to prohibited foreign entities, on the basis described above; and the removal of such ITC availability until United States greenhouse gas emissions fall to 25% of their 2022 level in the case that would occur after the deadlines outlined above.
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