Bipartisan Legislation Proposed by Rep. Panetta to Extend Investment Tax Credit in Monterey Herald

Extending Investment Tax Credit for Microgrid Controllers

MONTEREY – Bipartisan legislation that would extend the Inflation Reduction Act investment tax credit for microgrid controllers by another eight years, was authored and introduced by Rep. Jimmy Panetta, D-Carmel Valley, geared toward helping to keep power flowing during high demand or in emergencies.

The MICROGRID Extension Act

The Making Imperiled Communities Resistant to Outages with Generation that is Resilient, Islandable, and Distributed (MICROGRID) Extension Act was introduced by Reps. Panetta, CA-19 and Claudia Tenney, NY-24, who together also recently introduced the Technologies for Energy Security Act to extend the tax credits for fuel cells and linear generations.

Incentivizing Microgrid Expansion

As part of the Inflation Reduction Act, Rep. Panetta passed into law provisions to incentivize the expansion and deployment of microgrids, which provide backup power independent from the larger energy grid during emergencies. Rep. Panetta’s law provides a 30% tax credit for a qualifying microgrid property through 2025. This new legislation would extend the credit available for microgrid controllers to 2033.

What are Microgrids?

A microgrid is a local grid with an independent source of energy capable of disconnecting or “islanding” from the utility grid, according to the U.S. Department of Energy. Microgrids improve resilience by allowing critical facilities to continue operating in the event of a utility-grid outage. For manufacturers and industrial facilities, microgrids can also help ensure delivery of the high-quality, reliable electricity necessary to maintain today’s increasingly digitized operations.

Ensuring Reliable Energy

“The extreme weather conditions that hit California’s 19th Congressional District this year have underscored the need to accelerate the adoption of independent energy grids that will keep the lights on when the larger grid fails,” said Rep. Panetta in a press release. “My bipartisan legislation extends the tax credit, which I passed into law last Congress, that’s already shown incredible progress toward building out innovative, clean microgrid technology throughout our communities and the country. By ensuring that the incentives are extended, we can ensure that more microgrids are available to keep our homes and critical infrastructure connected to clean and reliable energy.”

Growth of Microgrid Technology

The U.S. Energy Department estimated that there were more than 450 operational microgrids in the United States in 2022.

Investing in Fuel Cells and Linear Generators

Reps. Panetta, Tenney and John Larson, CT-01, also introduced the bipartisan Technologies for Energy Security Act to extend the Inflation Reductions Act’s 30% investment tax credit for fuel cells and linear generators by another eight years.

Benefits of Fuel Cells and Linear Generators

Fuel cells and linear generators provide low-emission, decentralized energy and increased resiliency for communities. Fuel cells and linear generators are critical for maintaining power during emergencies, especially in California which is facing the increasing threat of blackouts and public safety power shutoffs. While many other low-carbon energy technologies are dependent on Chinese manufacturing and supply chain components, these innovative technologies are primarily manufactured in the United States. Rep. Panetta previously passed provisions of his legislation, the clean energy Parity Act, into law to ensure linear generators are eligible for the same tax credits as fuel cells.

Continued Federal Investment

“Although we are making progress by providing incentives for clean energy and clean transportation through the (Inflation Reduction Act), the development and deployment of innovative technologies like fuel cells and linear generators takes some time,” said Rep. Panetta in a release. “This bipartisan legislation would allow for more of that time by extending those incentives and ensuring continued federal investment in our domestic innovation to substantially reduce our carbon output.”

A Resilient and Sustainable Future

Panetta said he continues to be proud to be a part of the effort to not only provide these types of tax incentives, but also provide them for the proper amount of time necessary for people to reasonably invest in the country’s innovation for a more resilient and sustainable future.

Read More of this Story at – 2023-10-05 22:51:23

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