GREEN Act (H.R. 848)

Rep. Mike Thompson (D-CA) of Ways & Means introduced the GREEN Act (H.R. 848) on February 4, which included creating an ITC for standalone storage.

ITC rules restricting leases to or structured partnerships with tax-exempts and governments would be made inapplicable for storage and other energy ITC property; however, there is no similar relief for foreign persons.

• ITC % based on year the project "began construction
• Must be "placed in service" before 2031 for more than 10% ITC

Energy Storage Tax Incentive and Deployment Act of 2021 (H.R. 1684)

Rep. Mike Doyle (D-PA), Rep. Vern Buchanan (R-FL) and Rep. Earl Blumenauer (D-OR) introduced the Energy Storage Tax Incentive and Deployment Act of 2021 (H.R. 1684) on March 9, which would create an ITC for standalone storage.

Sen. Heinrich (D-NM) with 9 other Democrats, Sen. King (I-ME) & Sen. Collins (R-ME) introduced the same bill (S. 627) in the Senate.

H.R. 1684/S. 627 does not change the restrictions on leases to or partnerships with tax-exempts, governmental entities or foreigners

If either bill is passed (i.e. H.R. 848 or H.R. 1684/S. 627), the new tax credit could open the flood gates for energy storage deployment. Neither bill provides normalization relief for utilities.

• ITC % based on year the project "began construction
• Must be "placed in service" before 2026 for more than 10% ITC

Both bills make a wide variety of energy storage technologies eligible for the ITC.  Eligible technologies in both bills include batteries, compressed air, pumped hydropower, hydrogen storage (including electrolysis), thermal energy storage, regenerative fuel cells, flywheels, capacitors and superconducting magnets, as well as other energy storage technologies identified by the Secretary of the Treasury, after consultation with the Secretary of Energy, that have a capacity of not less than 5 kilowatt hours.