Third Way Applauds Introduction of the Energy Sector Innovation Credit
WASHINGTON - Third Way today released the following statement from Josh Freed, senior vice president of the Climate and Energy Program:
The Energy Sector Innovation Credit (ESIC) Act, incentivizes the deployment of new, innovative clean energy technologies that are crucial for reaching net-zero emissions in the power sector and creating good, well-paying jobs across the country. It fills a gap in the current tax code to support early stage technologies, including advanced nuclear, carbon capture, energy storage, and advanced renewables, which need greater incentives to compete with mature technologies. ESIC provides a tax credit for these early stage technologies based on their level of market penetration that phases out as the technology becomes more widely adopted.
To meet our climate goals, we need to deploy a diverse set of clean energy technologies at twice the rate we’ve ever achieved historically. This includes both technologies that exist today and new, innovative technologies that need additional development and deployment to bring down costs. According to the International Energy Agency, 50% of carbon emissions reductions between 2030 and 2050 will come from technology that is currently in the prototype or demonstration phase of development. A combination of ESIC, deployment tax credits, and a clean energy standard can ensure we decarbonize the grid rapidly with affordable and reliable clean energy technologies.