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House Ways and Means Committee Democrats introduced the Growing Renewable Energy and Efficiency Now (GREEN) Act of 2021 on February 5, 2021, which extends or expands the application of existing renewable energy tax credits, and provides incentivizes the purchase of EVs. Aside from the additional incentive to buy Tesla vehicles, the company's energy storage business could also greatly benefit from the new bill.
GREEN extends the investment tax credit (ITC) for solar energy property at 30 percent through 2025, which phases down to 26 percent in 2026, 22 percent in 2027, and 10 percent thereafter. The bill uses the same phaseout timeline and percentages for geothermal energy property, according to Tax Equity Times.
Application of the ITC is also expanded to include energy storage technology and linear generators at the 30 percent rate through 2026, and phases down by 4 percent each year in 2027 and 2028. The bill describes energy storage technology as that which uses batteries and other storage technology to store energy for conversion to electricity, and has a minimum capacity of 5 kWh, or to store energy to heat or cool a structure. For example, Tesla Powerwall, Powerpack, and Megapack fall into this description and will directly benefit from GREEN.
© 2021, Eva Fox. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.