Energy storage projects enjoy three exemptions and three halvings

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4 FAQs about Energy storage projects enjoy three exemptions and three halvings

What tax credits are available for energy storage projects?

Commercial/Grid-scale There is also a investment tax credit for larger energy storage projects. The Section 48 Investment Tax Credit offers businesses a similar 30% base tax credit for energy storage systems under 1 MW, or over 1 MW if certain apprenticeship and wage requirements are met.

Who can install energy-generation & storage property?

Tax-exempt and governmental entities, such as state and local governments, Tribes, religious organizations, and non-profits may install energy-generation and storage property to meet energy demands, reach clean energy transition goals, or save money on energy costs.

What is the base tax credit for energy projects?

• For projects beginning construction on or after Jan. 29, 2023 or where the maximum net output is 1 MW or greater, the base tax credit is 6% of the taxpayer’s basis in the energy property or qualified facility (or energy storage technology).

Can a non-profit install a 356 kW solar array on campus?

A tax-exempt not-for-profit entity, recently installed an on-campus 356-kW solar array installation. They expect to receive the ITC base credit amount (presumably at the 30% rate) plus the low-income communities and energy communities bonus credits, covering a total of 60% of the cost.