Capstone Turbine Corporation (NASDAQ:CPST), the maker of clean-energy microturbines, hailed the federal tax credit reinstated in 2020 for microturbines fueled by renewable energy sources.
The 30% federal Production Tax Credit (PTC) for biomass and landfill gas facilities has been retroactively extended to the end of 2020. Customers can claim an investment tax credit (ITC) of 30% in lieu of the Production Tax Credit.
“We believe that the reinstatement of the tax credit will help businesses lower their energy costs in the new green economy,” Capstone Turbine CEO Darren Jamison said in a statement on Friday.
READ: Capstone Turbine wins certification to connect to Australian power grid
President Donald Trump signed the Taxpayer Certainty and Disaster Tax Relief law on December 20, as part of a bipartisan financial year 2020 appropriations package.
This package continues funding for several programs, including the Department of Energy’s combined heat and power technical assistance partnerships and advanced manufacturing office R&D funding. It also supports the US Environmental Protection Agency’s CHP Partnership and Natural GasSTAR programs, and extends other incentives for energy production and efficiency.
The reinstated tax credit will allow businesses to claim a credit for qualified renewable energy projects, including purchases of Capstone’s reliable, ultra-low emission microturbine technology for use in digester or landfill gas applications.
Capstone executives worked in partnership with the American Biogas Council, the CHP Alliance, the Clean Energy Business Network, and other industry partners to push for the reinstatement of the credit for customers in the renewable energy sector.
“Maintaining support for market education programs that reduce barriers to CHP deployment and voluntary industry programs to support energy efficiency, emissions reductions, and clean air helps to preserve access to a diverse portfolio of energy resources,” said Jamison.
Capstone Turbine’s innovative microturbine technology has the ability to operate on biogas and other renewable fuels and produce clean and efficient electricity and thermal energy. The firm’s microturbines are designed to help end-users improve their environmental impact while meeting critical power and reliability requirements. The reinstatement of the PTC for projects using these fuels will support the global push for decarbonization.
“We applaud these tools that help develop and sustain innovative clean energy solutions and cleaner, safer sources of energy,” said Jen Derstine, vice president of marketing and distribution, at Capstone Turbine.
Capstone, based in Van Nuys, California, offers a product line-up of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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