Cost Recovery for Qualified Facilities, Qualified Property, and Energy Storage Technology

Agency: Department of the Treasury

 

Description:

Provides an additional tax deduction for facilities or property qualifying for the Clean Electricity Investment Tax Credit. These facilities or property will be treated as a 5-year property for purposes of cost recovery; meaning, they will be able to deduct from their taxable income the depreciating value of their business assets, such as equipment, faster than the value actually declines. In practical terms, qualifying facilities or property will be able to take bigger deductions—leaving them with lower taxable income—in the earlier years of a clean energy investment.

Bill Section:

13703

US Code:

168(e)(3)(B)

New or Existing:

Existing

Potential Cost:     

$624,000,000

Timeline:     

Property placed in service after 2024