INCENTIVES & PROGRAMS
Federal Storage ITC
Bookmark This Page for Updates On an Important Incentive
Right now Congress is entering a pivotal time as it continues negotiating the key components of President Biden’s domestic agenda. Central to that effort is consideration of the “Infrastructure Investment and Jobs Act," also referred to as the bipartisan “hard” infrastructure bill, as well as the Build Back Better Act, which is using a privileged procedure called Reconciliation. The Reconciliation bill contains a number of important climate change provisions along with extension and expansion of vitally important clean energy tax credits, including the standalone storage ITC.
The current legislative text for the standalone storage ITC contained in the Reconciliation bill includes a 30% standalone storage ITC through 2031. The bill also includes a direct pay option which will be critical to accelerating the storage market and allow tax exempt entities to take advantage of this critical incentive. Direct Pay also helps mitigate the existing supply-demand imbalance with respect to the tax equity market. Stem is hopeful that the House and Senate will come together in the coming weeks to deliver a strong boost to the growing storage marketplace. Stem encourages everyone impacted by this policy to weigh in with their respective elected officials and request their support specifically for the standalone storage ITC, and the broader Reconciliation bill, so we can truly unlock and accelerate the clean energy transition.
This page will be updated as more details become available, so please check back often. For specific questions on how the storage ITC might affect your energy storage project, contact Stem using the form below.