Investment Tax Credit (ITC), a particular form of federal tax incentive for business development, has been proposed by U.S. officials, and by the American Council On Renewable Energy (ACORE) as a way to dramatically boost energy jobs; and also for a 30 gigawatts ramp up in cleaner electricity for the United States Grid.
Firstly, in a new report by ACORE released this Thursday, the agency outlines the benefits of a transmission ITC. This form of incentive has been on discussion lately; specially after the Biden administration presented its American Jobs Plan.
Secondly, the report finds that, under an ITC scheme the government would incentivize the construction of regionally significant high-voltage transmission infrastructure; good-paying jobs; clean energy deployment, and also private investment.
Thirdly, according to ACORE, an ITC would create 650,000 good-paying jobs; would enable an additional 30,000 megawatts of renewable energy capacity; also, spur more than $15 billion in private capital investment in the near term; and finally, provide $2.3 billion in energy cost savings.
Moreover, the report discussed the need of such scheme of funding; specially as there is no other functioning means of funding critically needed large-scale regional; and interregional transmission infrastructure in the United States.
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In addition, the authors discuss further benefits of the scheme, like a boost in domestic manufacturing; environmental justice benefits, improved grid reliability and resilience; and also, carbon emissions reductions.
Furthermore, the paper underlines that, on a White House release, National Climate Advisor Gina McCarthy noted. “After the Texas transmission debacle this winter, no one can doubt the need to invest in our electric grid.”
On the other hand, Rob Gramlich, President of Grid Strategies LLC and co-author of the report, said. “Highway-type lines are a special class that support clean energy and also reliability; yet there is a hole in our regulatory structure that leaves them unfunded. Indeed, a tax credit can help. Electric sector investors know how to use tax credits to quickly build infrastructure and put people to work.”
Finally, Congressman Steven Horsford, underlined. “Investing in transmission will create jobs, lower energy costs, and help the United States meet our ambitious clean energy goals.” To read the report, click here.