WASHINGTON, D.C. – Congressmen Mike Thompson (CA-01) and Chris Gibson (NY-20) announced on Thursday that they have joined together to introduce H.R. 4096, The Storage Technology for Renewable and Green Energy 2012 Act (STORAGE) in the United States House of Representatives.

The STORAGE Act would provide a tax credit to individuals and businesses when they invest in energy storage systems.

Energy storage systems allow businesses and consumers to keep excess energy generated when energy is in low demand and then use it during periods of peak demand, reducing consumers’ electricity bills, greatly enhancing the reliability of alternative energy sources, and making our electric grid more efficient and secure.   

“When it comes to addressing American’s energy challenges, we need to use every tool in the box,” said Thompson. “These tax incentives will move us closer towards energy independence by making our electric grid more reliable, using energy more efficiently, reducing costs and creating jobs.”

Businesses and individuals would both be eligible for tax credits under the STORAGE Act. Businesses and factories that generate energy via large compressed air systems, flywheels, and large arrays of fuels cells and batteries would be eligible for a 20 percent tax credit.

Households and businesses that purchase energy storage systems for their property would be eligible for a 30 percent tax credit.

The tax credits would also help improve our alternative energy infrastructure. The current alternative energy electricity infrastructure is highly inefficient. Right now, alternative energy sources are often shut down if the energy cannot be used immediately.

Energy storage systems can help fix this problem by storing energy temporarily and delivering it when it is needed.

Energy storage systems also help cope with peak demand. By allowing consumers to store energy, rather than draw on the system during peak demand time, it can reduce the number of power plants that are needed.

A companion bill, S. 1845, was introduced in the United States Senate last fall by Senator Ron Wyden (D-OR), Senator Jeff Bingaman (D-NM) and Susan Collins (R-ME).

Congressman Mike Thompson represents California’s 1st Congressional District, which includes the counties of Del Norte, Humboldt, Lake, Mendocino, Sonoma, Napa and Yolo.