Reed Announces Introduction Of Bill Involving Energy Sector

WASHINGTON – Congressman Tom Reed announced Thursday that he’s introduced a bill labeled the Energy Sector Innovation Credit Act.
Reed said the legislation, if introduced into law, will encourage the U.S. energy market to be technology-diverse, innovative and good for customers.
“The United States is falling behind in energy innovation because the size and the complexity of the energy market stymies American ingenuity and entrepreneurship,” Reed said. “The Energy Sector Innovation Credit Act encourages cutting-edge energy technologies to break into the market, and it keeps government from picking winners and losers so all innovative, efficient energy technologies can succeed.”
Reed said the Energy Sector Innovation Credit Act:
Stops picking winners and losers in the energy sector by rewarding one form of technology over the other.
Guarantees the tax credit is phased out over time to prevent taxpayers from propping up unprofitable or inefficient energy technologies. The tax credit also scales down as production scales up.
Rewards efficiency as the tax credit is only applied to the value of the energy when it is sold, so unneeded power is not financially rewarded.
Ensures energy technologies cannot double dip by claiming existing incentives along with this proposed tax credit.
“This tech-neutral tax credit will incentivize innovation across the board for new energy technologies,” Rep. (Il.) Darin 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.”
“This Energy Sector Innovation Credit would bring the energy portion of the tax code back to the essentials by help cutting-edge technologies break into the market and upend the status quo without distorting the free market,” ClearPath Action Executive Director Rich Powell said. “Congressman Reed’s bill will help clean energy sector innovation be more like Silicon Valley: fast, disruptive, exciting and good for consumers.”