Legislation Would Create Additional 10% ITC for Replacing ‘Peaker’ Plants

Tuesday, May 18, 2021 - 11:45am

Legislation introduced in both houses of Congress would create an additional renewable energy investment tax credit (ITC) for battery storage and renewable electricity that displaces electricity generated by “peaker” plants (which come online during times of high demand and release harmful emissions) in disadvantaged communities. The Promoting Energy Alternatives is Key to Emission Reductions (PEAKER) Act of 2021 would provide financial incentives to more rapidly deploy clean energy and battery storage to replace aging power plants in those disadvantaged communities. Sen. Kirsten Gillibrand, D-New York, and Rep. Yvette Clarke, D-New York, sponsored the legislation, which would establish a $1 billion fund for the next 10 fiscal years for clean energy projects and would require a nationwide assessment that identifies the location of each peaker plant.

Proposed renewable energy legislation will be discussed this Thursday and Friday at the Novogradac 2021 Spring Renewable Energy and Environmental Tax Credits Virtual Conference.