The Electric Power Infrastructure Improvement Act is a bill to support more than 500,000 jobs, improve the resilience of the grid, and support new projects that connect modern renewable energy resources to the power demands of regional consumer markets. The bill would also create an investment tax credit (ITC) to help promote construction of regionally significant transmission projects across the nation.
President Biden’s American Jobs Plan includes a targeted investment tax credit that incentivises the buildout of high-voltage capacity power lines and mobilises tens of billions in private capital off the sidelines.
The bill is supported by the American Clean Power Association, the American Council on Renewable Energy (ACORE) and Americans for a Clean Energy Grid.
The Electric Power Infrastructure Improvement Act would provide an investment tax credit of 30% for regionally significant transmission projects. Projects that would qualify for the investment credit are:
Overhead, underground or offshore transmission lines, including ancillary facilities,
At least 500 megawatts and 275 kilovolts in capacity
Either AC or DC
Deliver power produced in either a rural area or offshore, and
Are placed in service by December 31, 2031.
“Sen. Martin Heinrich, Rep. Steven Horsford and Rep. Susie Lee’s introduction of the Electric Power Infrastructure Improvement Act adds to the growing momentum for a federal transmission investment tax credit (ITC)” said Gregory Wetstone, President and CEO of the American Council on Renewable Energy (ACORE). “As we saw this winter, America’s outdated grid infrastructure is hurting consumers and our economy. With a transmission ITC, we can enhance grid reliability, create jobs, save consumers money, and provide developers with the long-term certainty they need to invest in a 21st century Macro Grid that’s capable of delivering the clean energy future Americans want and deserve. We look forward to working with lawmakers on both sides of the aisle to pass this critically important legislation this year.”
A copy of the Electric Power Infrastructure Improvement Act is available here.
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