Thermal power storage investment code

What are the proposed energy storage regulations?

Energy Storage. The proposed regulations would retain the Code’s broad approach to defining new ITC-eligible energy storage property but would include a nonexclusive list of qualifying technologies.

Is energy storage technology a dual use property?

In addition, the proposed regulations prospectively incorporate a modified version of the Dual Use Rule for other traditionally dual use property (other than energy storage technology), but reduce the “cliff” from 75% to 50%. As revised by the IRA, Section 48 includes energy storage technology in the definition of energy property.

What technologies are included in ITC regulations?

These proposed regulations also address technologies that were added to the ITC as energy property by the IRA, including electrochromic glass, energy storage technology, microgrid controllers, and biogas property.

Are power conditioning and transfer equipment eligible for the ITC?

However, if power conditioning and transfer equipment owned by one taxpayer is an integral part of an energy property owned by an unrelated taxpayer, the taxpayer that owns the power conditioning and transfer equipment would not be eligible for the ITC, but the taxpayer that owns the energy property would be eligible for the Section 48 credit.

What equipment qualifies as energy storage technology?

The Proposed Regulations provide specific examples of equipment that qualifies as “energy storage technology,” such as electrochemical batteries, ultracapacitors, physical storage such as pumped storage hydropower, compressed air storage, flywheels and reversible fuel cells.

Can an energy production project claim an ITC on qualified interconnection property?

This surprisingly could allow an energy production project with a total nameplate capacity far exceeding 5 MW to claim an ITC on qualified interconnection property. Certain Additional Confirmations