Bipartisan Legislation Would Create ITC, PTC for Low-Market-Penetration Clean Energy Technologies

Wednesday, July 28, 2021 - 10:15am

A bipartisan group of legislators introduced in both houses of Congress a bill to encourage innovation in the clean energy to help rapidly scale and diversify new technologies. The Energy Sector Innovation Credit (ESIC) Act would create an investment tax credit (ITC) of up to 40% and a production tax credit (PTC) of up to 60% for low-market-penetration technologies. The credit could be applied to generation, storage, carbon capture and hydrogen production. The credit would phase out as technologies mature and Congress could take up new technology recommendations from the Department of Energy every five years. The Senate version of the bill was introduced by six senators, three Democrats and three Republicans. The House version was introduced by Reps. Tom Reed, R-New York, and Jimmy Panetta, D-California. Sponsors also released a one-page summary and section-by-section summary of the bill.

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