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Insight by Energy Choice Coalition
The Senate Finance Committee last week highlighted the important role of energy storage in achieving the transition to a zero-carbon power sector with the advancement of a $259.5 billion clean energy package that includes tax incentives for stand-alone storage and combined solar and storage projects.
The Clean Energy for America Act by Oregon Democrat Sen. Ron Wyden seeks to streamline the tax code to make clean energy tax credits more accessible and effective. The Wyden package differs from President Biden’s American Jobs Plan, which also included an investment tax credit for storage, in that it would replace the current patchwork of 40 clean energy credits with three categories of technology neutral incentives for zero-emission generation.
The Senate Finance Committee voted 14-14 on May 26 to advance the package to the floor for consideration by the full Senate. Unlike the floor, Senate rules allow legislation at the committee level to move forward on a tie vote.
In addition to making the investment tax credit (ITC) and production tax credit (PTC) available to storage, the package would:
- Provide developers of clean energy projects the option to claim credits upfront in the form of a direct payout, reducing the need to sell the credits on an exchange to raise capital;
- Makes homeowners who install renewable energy generation, including rooftop solar or wind turbines, eligible for a 30 percent tax credit under the ITC;
- Imposes a ban on clean energy equipment imports from China over its suspected use of forced labor; and,
- Extends the $12,500 tax credit for consumers to purchase U.S.-made electric vehicles.
View this News Release (external link)