Provide power storage equipment tax

What is a safe harbor for thermal energy storage?

A safe harbor provides that the time profile rule is met if the thermal energy storage property can store sufficient energy to heat or cool a building interior for at least one hour.

Will the Internal Revenue Code of 1986 change the energy storage industry?

Specific to energy storage, the act’s changes to the Internal Revenue Code of 1986, as amended (Code), have the potential to be a game-changer for the energy storage industry in the United States, in terms of both deployment and equipment manufacture.

What is an energy property acquisition?

The final regulations rephrase this definition to provide that acquisition is a transaction by which a taxpayer acquires the rights and obligations to establish tax ownership of an energy property for federal income tax purposes. The proposed and final regulations provide general definitions of each type of energy property.

What type of property qualifies as hydrogen energy storage property?

Some types of property that qualify as hydrogen energy storage property are identified, including above ground storage tanks, underground storage facilities, associated compressors, and integral parts such as hydrogen liquefaction equipment and gathering and distribution lines.

What is the maximum net output of an energy property?

The proposed and final regulations specify that the maximum net output of an energy property for purposes of applying the five-megawatt limitation is measured solely by the nameplate generating capacity of the unit of energy property when placed in service.

What is a thermal storage property?

The property must be specifically designed to substantially alter the time profile of when heat added to or removed from the thermal storage medium can be used for heating or cooling.