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Bonds and Financing

Bipartisan Bills In Congress Allow For Energy Tax Credit Transfer To Public Power Owners

Bipartisan legislation in Congress calls for a technology-inclusive, flexible investment tax credit (ITC) or production tax credit (PTC) designed to promote innovation across a range of clean energy technologies, including generation, storage, carbon capture, and hydrogen production. The American Public Power Association (APPA) supports the legislation.

The Energy Sector Innovation Credit Act was reintroduced on July 27 by Senate Finance Committee Ranking Member Mike Crapo (R-ID) and Finance Committee member Sheldon Whitehouse (D-RI), along with House Ways and Means Committee members Tom Reed (R-NY) and Jimmy Panetta (D-CA).

The legislation would allow qualifying facility owners to transfer any credits that accrue to project partners, including someone who has an ownership interest in the property, provided equipment for or services in the construction of the property, provides electric transmission or distribution services for such property, purchases electricity from the property pursuant to a contract, or provides financing for the property.

While APPA is primarily pursuing the direct payment of energy tax credits, Senators Crapo and Reed have been leaders in the efforts to obtain comparable incentives for public power and APPA is supportive of their efforts.

In a letter to Senator Crapo and Senator Reed, APPA President and CEO Joy Ditto noted that allowing the transfer of energy-related tax credits to other project partners “would be an important step to removing the financial disincentive for public power utilities to own such facilities, which are needed to transition to cleaner generating technologies.”

Along with APPA, the legislation is supported by a number of other groups and entities including the Utah Associated Municipal Power Systems (UAMPS).

Established in 1980, UAMPS is an energy services interlocal agency of the state of Utah. As a project-based consortium, UAMPS provides a variety of power supply, transmission and other services to its 47 members, which include public power utilities in six western states: Utah, California, Idaho, Nevada, New Mexico, and Wyoming.