Reed, Panetta, Crapo, Whitehouse Introduce Legislation to Encourage Innovation in the Clean Energy Sector
Washington, D.C. — Today, House Ways and Means Members Rep. Tom Reed (R-NY-23) and Rep. Jimmy Panetta (D-CA-20) introduced the Energy Sector Innovation Credit (ESIC) Act, a bipartisan energy tax proposal to encourage innovation in the clean energy sector to help rapidly scale and diversify new technologies. Original co-sponsors of the House legislation include Rep. Darin LaHood (R-IL-18), Rep. Tom Suozzi (D-NY-03), Rep. David Schweikert (R-AZ-06), and Rep. Josh Gottheimer (D-NJ-05).
Senator Mike Crapo (R-Idaho), Ranking Member of the U.S. Senate Finance Committee and U.S. Senate Finance Committee member Sheldon Whitehouse (D-Rhode Island) have introduced identical legislation in the U.S. Senate. Original co-sponsors of the Senate legislation include John Barrasso (R-Wyoming), Michael Bennet (D-Colorado), Jim Risch (R-Idaho), and John Hickenlooper (D-Colorado).
“It is time Congress finally act to mobilize American ingenuity and fully unleash the power of new innovative energy technologies,” said Congressman Reed. “We can best do so by passing the Energy Sector Innovation Credit Act, our technology-neutral tax incentive designed to boost the deployment of any cutting-edge clean energy system without the government picking winners and losers. We are proud to reintroduce this critical legislation, and I thank my colleagues on both sides of the aisle for their continued support.”
“To combat the ever-growing climate crisis, we can use the tax code to incentivize clean energy innovation for next-generation technologies,” said Congressman Panetta. “Our bipartisan and bicameral Energy Sector Innovation Credit will leverage the ITC and PTC tax credits to bolster new, emission-reducing technologies and motivate existing energy sources to go greener. This bill will provide the tools necessary to support clean energy entrepreneurship and reach our emissions reductions targets more quickly and efficiently.”
“This tech-neutral tax credit will incentivize innovation across the board for new energy technologies,” Congressman LaHood said. “Facilitating the expansion of cutting edge energy technologies into the marketplace in a fair and fiscally responsible way is aimed at providing a cheaper, more reliable energy portfolio. This new incentive will strengthen our country’s economic competitiveness, as well as reinforce our leadership in global energy innovation, and I am pleased to join this bipartisan group to introduce this legislation.”
“I am proud to join this bipartisan effort with my colleagues to promote clean energy technology in the United States,” said Congressman Schweikert. “The Energy Sector Innovation Credit is a pro-growth, economically responsible tax credit that will provide a critical opportunity for investment in emerging clean energy technologies, and take us one step forward in achieving energy independence.”
"Protecting our environment and improving energy efficiency are issues that everyone, Republicans and Democrats, can come together on,” said Congressman Josh Gottheimer. "I am proud to support this bipartisan legislation, which will lower taxes for wind, solar, and other alternative energy innovators and provide them with incentives to utilize green, efficient, and cutting-edge technology. We need an all-of-the-above approach, focusing on every option that can improve energy efficiency for our country."
“If we are to meet long-term emissions targets without sacrificing affordable electricity, we need to invest in on-the-horizon technologies that can accomplish our environmental goals, create good-paying American jobs and meet our energy demand,” said Senator Crapo. “ESIC will incentivize technology-wide clean energy innovation so new, clean technologies can rapidly scale up and compete independently in the market. Moreover, ESIC automatically scales down credits as technologies’ market penetration ramps up, so taxpayer dollars do not subsidize market-mature technologies. The U.S. is a leader in energy production because our robust economy allows for innovation and pathways to clean energy solutions, and I will work to get this legislation across the finish line.”
“Major investments in innovative clean energy technologies are needed if we’re going to make a difference in the race against climate change,” said Senator Whitehouse. “Our bipartisan legislation will accelerate nascent clean technologies that have the potential to compete against heavy-polluting forms of energy and create good jobs in the process.”
The Energy Sector Innovation Credit is a technology-inclusive, flexible investment tax credit (ITC) or production tax credit (PTC) designed to promote innovation across a range of clean energy technologies, including generation, storage, carbon capture and hydrogen production. ESIC:
ESIC is supported by a number of industry and environmental groups, including ClearPath Action, Idaho Falls Power, the Evangelical Environmental Network, the Utah Associated Municipal Power Systems, Citizens’ Climate Lobby, the U.S. Nuclear Industry Council, the Nuclear Energy Institute, Carbon180, Bipartisan Policy Center Action, The Nature Conservancy, American Conservation Coalition, ThirdWay, Nuclear Innovation Alliance, Arnold Ventures, Clean Air Task Force, Citizens for Responsible Energy Solutions, Xcel Energy, American Public Power Association, Oklo Inc., NuScale Power, Geothermal Rising, Fervo Energy, Ormat, Geothermal Resource Group, GeothermEx, Long Duration Energy Storage of California, Environmental Defense Fund, Carbon Utilization Research Council, Clean Hydrogen Future Coalition, and National Rural Electric Cooperatives Association.