Is energy storage property eligible for a section 48E credit?

In particular, proposed § 1.48E-2 provided that energy storage property is primarily used in the transportation of goods or individuals and not for the production of electricity, and therefore is not EST eligible for the section 48E credit, if a credit is claimed under section 30C for such property.

What is the clean electricity investment credit?

The Clean Electricity Investment Credit is a newly established, tech-neutral investment tax credit that replaces the Energy Investment Tax Credit once it phases out at the end of 2024. This is an emissions-based incentive that is neutral and flexible between clean electricity technologies.

What regulatory guidance has the government released on energy storage?

Of particular importance to the energy storage industry, the government has released final regulatory guidance for the ITC (both Section 48 and 48E of the Code), prevailing wage and apprenticeship (PWA) requirements, and transferability and direct payment, as well as other guidance on the energy community and domestic content tax credit “adders.”

Does the section 45Y credit apply to a sale of electricity?

The Treasury Department and the IRS disagree that the rule in Notice 2008-60 that is applicable to the section 45 credit, under which the sale of electricity to a related party with a subsequent sale to an unrelated party is treated as a sale to an unrelated party, should apply to the section 45Y credit.

What is a qualified investment in energy storage technology?

For purposes of subsection (a), the qualified investment with respect to energy storage technology for any taxable year is the basis of any energy storage technology placed in service by the taxpayer during such taxable year.

Will section 45Y and 48E credits provide additional economic incentive?

In the preamble to the proposed regulations, the Treasury Department and the IRS also requested comment regarding whether the section 45Y and 48E credits may provide additional economic incentive for the consumption of a product categorized as waste prior to the availability of the incentive provided by the section 45Y and 48E credits.