New California legislation would create 30% tax credit with direct pay option for qualifying microgrids

On April 14, California Congressman Jimmy Panetta (D-Carmel Valley) introduced the Making Imperiled Communities Resistant to Outages with Generation that is Resilient, Islandable and Distributed (MICROGRID) law. The legislation encourages the expansion and deployment of microgrids to provide backup power during emergency situations.

The bill would create a 30% tax credit for eligible ownership of microgrids until 2025, tapering to 10% by 2028 and ending in 2029 to drive the expansion and rollout of microgrids at the local level. The credit can be withdrawn by governments and nonprofits as an instant payment, allowing communities to take advantage of the credit.

“Many California communities, including those on the Central Coast, experience frequent power cuts and shutdowns due to wildfires, public safety outages and other emergencies caused by extreme weather events,” said Congressman Panetta. “My MICROGRID law would provide accessible tax credits for local governments to build and deploy microgrids, and provide a cleaner energy alternative to fossil fuel generators independent of our energy grid. Expanding and deploying microgrids can harness clean energy sources, keep our homes and critical infrastructure connected when the larger grid goes down, and provide reliable and consistent electricity for our homes and security for our communities. “

News item from the Office of Congressman Panetta

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