Heating energy storage investment code

Is energy storage technology eligible for IRC Section 48 ITC?

The Final Regulations confirm that energy storage technology is eligible for the IRC Section 48 ITC even if it is co-located with or shared by a facility that is otherwise eligible for the credits under IRC Sections 45, 45V or 48.

What is the Investment Tax Credit (ITC) for section 48?

The U.S. Department of the Treasury and IRS have issued Final Regulations regarding the investment tax credit (ITC) for Section 48 of the Internal Revenue Code. The regulations include the ITC for energy generation, energy storage technology, qualified biogas property and interconnection property.

Is energy storage technology eligible for the ITC?

With respect to energy storage technology, Treasury and the IRS alleviated some taxpayer concerns by confirming that energy storage technology is eligible for the ITC if it satisfies the requirements of Section 48, even if it is co-located with or shared by a facility that is otherwise eligible for tax credits under Sections 45, 45V, or 48.

What energy storage technology is included in IRA Section 48?

The IRA amended section 48 to include standalone energy storage technology. This includes electrical energy storage property, thermal energy storage property and hydrogen energy storage property.

What are the proposed regulations for section 48 investment tax credit?

The proposed regulations are discussed in the PwC Insights Proposed regulations define energy property for Section 48 investment tax credit and Regulations propose special rules on Section 48 energy property, credit bonuses.

What are the proposed & Temporary Regulations under Section 48?

In November 2023, IRS and Treasury released proposed and temporary regulations under Section 48, which we discussed here (the “ proposed regulations ”). Section 48 provides an ITC in an amount generally equal to 30% of a taxpayer’s basis in “energy property” placed in service during the taxable year.