Do energy storage systems qualify for a manufacturing exemption?

The Texas comptroller has published at least two private letter rulings explaining that energy storage systems do not qualify for the manufacturing exemption because the batteries are for storing the energy, and storage is not essential to generating the energy. 17

What exemptions and exclusions are available for Bess?

Typical exemptions or exclusions available for BESS vary by state and may be based on: if BESS co-locates with a solar or wind facility in a state that provides an exclusion or exemption for a solar or wind facility. Other issues facing BESS are the intended use of the facility and installation.

What if Bess co-locates with a solar or wind facility?

if BESS co-locates with a solar or wind facility in a state that provides an exclusion or exemption for a solar or wind facility. Other issues facing BESS are the intended use of the facility and installation. For instance, solar and wind facilities may be exempt or excluded from property tax.

Does Bess have a tax credit for solar?

Before the Inflation Reduction Act (IRA) was enacted in 2022, BESS could only access federal tax credit funding when powered by solar and required the business-owned storage to be charged with solar 75 percent of the time.

Is a stand-alone energy storage a qualified person?

Notably, no NAICS code describes stand-alone energy storage, and there is no published guidance on whether a stand-alone BESS could be a qualified person. Stand-alone BESS is subject to property tax. Texas offers an incentive program referred to as chapter 312 to attract new capital investment that has benefitted renewable development.

Does Bess have a sales tax exemption?

Florida law also provides manufacturing sales tax exemptions; however, these exemptions do not apply to the purchase of utility-scale BESS equipment used to store wind or solar power. Innovation is a driving force in the development and use of BESS.