HiP Co-founder and Chairman of the Board John Prunkl offered some perspective on how important this achievement is, “HiP has been laser-focused for the past 10 years on educating Congress on the environmental benefits of capturing every ounce of wasted heat. When we first started this effort, most lawmakers and their staffs were completely unaware of our technology; today, WHP is widely recognized as a clean energy resource in many Congressional offices. As waste heat has the potential to generate 15 GW of zero emission electricity to power American industry, WHP technologies are an excellent tool for advancing the dual goals of a strong economy and a more sustainable environment. We are thrilled to have an ITC that levels the clean energy playing field for WHP projects.”
Lynn Abramson, HiP Federal Affairs Director and President of the Clean Energy Business Network, added, “We deeply appreciate the Congressional clean energy champions whose leadership and persistence have seen this long-awaited WHP ITC across the finish line.”
On the Senate side, those champions include Senators Carper and Cardin who tirelessly introduced bills to create a tax credit for WHP for many years. And, on the House side, those champions include Representative Brad Schneider and co-sponsors Reps. Suozzi, Sanchez, Davis, Beyer, Panetta, Blumenauer, and Moore who ensured that WHP receives the same credit available to other zero emission energy resources. HiP thanks the many current and prior Members of Congress and their staffs who have worked to bring this tax credit to reality.
This ITC is available for “waste energy recovery property” which is defined as property that “generates electricity solely from heat from buildings or equipment if the primary purpose of such building or equipment is not the generation of electricity.” This includes what is commonly known as “waste heat to power” systems which capture exhaust heat and other forms of waste heat and convert it to electricity. The ITC is limited to projects with a nameplate capacity of 50 MW and that commence construction between January 1, 2021 and December 31, 2023. Projects that commence construction in 2021 and 2022 are eligible for a 26 percent credit. Projects that commence construction in 2023 are eligible for a 22 percent credit. If a property would qualify as both “waste energy recovery property” and “combined heat and power property” under the tax code, the taxpayer may elect to treat the property as “waste energy recovery property.”