AUGUSTA - Rep. Mo Terry, D-Gorham, presented LD 2030, a bill aimed at encouraging energy storage companies to conduct business in Maine, before the Legislature's Taxation Committee on Wednesday. LD 2030 would create an exemption from sales and use tax for energy storage systems and would make qualified energy storage systems eligible for the business equipment tax exemption.
In recent years, Maine has seen a boom in renewable energy projects, reflective of Gov. Mills commitment to transition to 80% renewable energy by 2030 and 100% renewable energy by 2050. Renewable energy generation often results in periods of high production, not always corresponding with demand levels. Energy storage facilities allow excess energy to be stored until such time that it can be used, minimizing waste and optimizing in-state energy generation.
"As technologies develop to allow us to transition to cleaner energy sources, it is critical that Maine not get left in the dust because we don't have the infrastructure to keep up," said Terry. "Encouraging energy storage facilities to come here and set up shop will enable us to ride the peaks and valleys of energy production associated with renewables."
In 2019, the Legislature established a commission to study the economic and environmental benefits of energy storage to the Maine electricity industry. The commission found that energy storage has the potential to reduce costs, improve reliability and support renewable energy development. It further concluded that the development of energy storage facilities may be inhibited by market barriers.
"Creating a tax environment that is hospitable to energy storage companies will address critical barriers to successfully achieving the many benefits that energy storage facilities can contribute to our state," said Terry.
The Taxation Committee will hold a work session on the bill in the coming days.
Terry, who represents part of Gorham, is serving her third term in the Maine House of Representatives. She is a chef and small business owner with more than 25 years of experience in the food service industry. She serves as House chair of the Taxation Committee.
Contact:
Jackie Merrill [Terry], c. 812-1111