OBBB provisions provide BESS projects access to tax credits through 2034 before phasing them out in 2036. According to our 2025 mid-year market intelligence report, investment tax credit (ITC) pricing for standalone and hybrid BESS ranged between $0.915 and $0.945 in the first half. .
OBBB provisions provide BESS projects access to tax credits through 2034 before phasing them out in 2036. According to our 2025 mid-year market intelligence report, investment tax credit (ITC) pricing for standalone and hybrid BESS ranged between $0.915 and $0.945 in the first half. .
By preserving the value and timeline of the Inflation Reduction Act of 2022 fiscal incentives for utility-scale battery energy storage systems, House Reconciliation Bill 1 (H.R. 1) ensures that more than 143 GW of planned US capacity could receive at least a 40% tax credit based on energy community. .
Systems (BESS) have become a cornerstone of modern energy infrastructure in the United States. As the national grid lessens its dependence on fossil fuels and integrates more renewable energy sources, utility-scale batteries p ovide essential services such as frequency regulation, energy arbitrage. .
Battery storage tax credits have largely been spared from sweeping cuts to clean energy incentives, which were implemented as a result the ‘ One Big, Beautiful Bill Act.’ Passed on July 4, 2025, the legislation largely spares battery energy storage systems (BESS) from the credit reduction that wind. .
In the first half of 2025, standalone BESS and hybrid solar+storage systems accounted for about 26% of all tax credits sold. This was an increase of 11% over 2024. Market composition by technology type Multiple drivers are contributing to the growth of BESS. Steadily declining costs over the past. .
Battery Energy Storage Systems can benefit from powerful tax tools like MACRS and 100 percent bonus depreciation, thanks to the IRA and OBBBA. Standalone BESS projects placed in service after January 19, 2025 can immediately deduct full capital costs, dramatically improving ROI and early cash flow..
In this installment of Andersen’s Sodium Podium, the authors discuss the differing property tax and sales tax considerations regarding battery energy storage systems and examine the policies of four states in depth. Copyright 2023 Andersen Tax LLC All rights reserved. Battery energy storage systems.
