U.S. Rep. Steven Horsford (D-Nev.), U.S. Sen. Martin Heinrich (D-N.M), and U.S. Rep. Susie Lee (D-Nev.) have introduced the Electric Power Infrastructure Improvement Act, which would provide an investment tax credit of 30% for regionally significant transmission projects, as noted in an April 8 statement posted on the websites of Horsford and Heinrich.
The statement noted that projects that would qualify for the investment credit are:
- Overhead, underground, or offshore transmission lines, including ancillary facilities
- At least 500 MW and 275 kV in capacity
- Either AC or DC
- Able to deliver power produced in either a rural area or offshore
- Placed in service by Dec. 31, 2031
As noted in the legislation, the qualifying electric power transmission line credit for any taxable year is an amount equal to 30% of the qualified investment for such taxable year with respect to any qualifying electric power transmission line property of the taxpayer. The amendments made by the legislation are to apply to property placed in service after Dec. 31, 2021, the legislation said.
The statement noted that President Joe Biden’s recently released American Jobs Plan includes a targeted investment tax credit that incentivizes the buildout of high-voltage capacity power lines.
Horsford said in the statement, in part, “The Electric Power Infrastructure Improvement Act will create good-paying jobs for Nevadans while supporting projects that connect modern renewable energy sources to regional consumer markets, alleviate the strain on existing transmission lines, and improve the resilience of the grid.”
Similarly, Lee said in the statement, in part, that the legislation “will help keep Nevada at the cutting edge of energy development, while bringing more jobs and diversifying our economy, which is more important than ever as our economy has been devastated by the COVID-19 pandemic.”
Heinrich said in the statement, in part: “We have made significant progress in the last decade in clean energy generation. However, we are simply not doing enough to incentivize investments for the required transmission capacity. Tax incentives have proven to be a major signal to investors to put their capital behind wind and solar. We should encourage the same type of growth for the infrastructure that will deliver the power from these and other clean energy resources to market.”