Rep. Tom Reed, R-N.Y., and several other House members on Jan. 8 introduced legislation that would institute a technology-neutral tax credit. The Energy Sector Innovation Credit Act is supported by the American Public Power Association.
Reed was joined in introducing the measure by fellow Ways and Means Committee members Reps. Jimmy Panetta, D-Calif., Darrin LaHood, R-Ill., Tom Suozzi, D-N.Y., David Schweikert, R-Ariz., and Josh Gottheimer, D-N.J..
“By offering a tax incentive for new energy technologies we will increase energy on the grid, ensure unneeded energy is not financially rewarded and thus unnecessarily produced, help cutting-edge technologies break into the market, incentive older energy sources to innovate and slash global emissions,” Reed said.
The legislation will, among other things, help cutting-edge technologies break into the market, naturally phase down the tax credit as each technology becomes commercially viable and leverage new private investment in budding clean technologies through a tech-neutral approach, according a news release related to the bill.
Historically, energy-related tax credits have missed the nearly 30 percent of customers served by tax-exempt entities, including public power utilities.
The Association supports the legislation because it would allow for the transfer of tax credits to other partners in the project, making these tax credits both more effective and more fair.