Benzinga | Dec 29, 2020 08:08AM EST

Capstone Turbine Announces Extension Of Federal Tax Credits For Microturbines, Combined Heat And Power, And Renewable Electricity From Biomass

Tax Extension Is Part of the $900 Billion COVID-19 Relief Bill Signed by President Trump

VAN NUYS, CA / ACCESSWIRE / December 29, 2020 / Capstone Turbine Corporation (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that the 10% federal Investment Tax Credit (ITC) for microturbines and combined heat and power (CHP) projects was extended through the end of 2023 in the bi-partisan COVID-19 stimulus package.

The legislation, signed by President Trump on Sunday, December 27, 2020, also extended the production tax credit (PTC) for renewable electricity from open and closed-loop biomass through the end of 2021. The PTC can be used for 10 years after construction begins or can be converted to a one-time 30% investment tax credit. This credit will continue to apply to purchases of Capstone's ultra-low emission and high-reliability green energy systems.

In addition, the end of year omnibus budget bill included the CHP Support Act in the Energy Package, which re-authorizes the U.S. Department of Energy's CHP Technical Assistance Partnerships through fiscal year 2025, as well as a number of research programs related to distributed generation, CHP and microgrids. These programs include funding for industrial heat and improved efficiency with CHP, and for potential new fuels for CHP listed as priority areas.

Microturbines are highly efficient green energy systems with low emissions that supply clean, distributed, and resilient power. Microturbine technology was invented in the United States, where the overwhelming majority of this technology continues to be produced today. The federal ITC has accelerated microturbine technology deployment and is an important signal to the microturbine manufacturing industry to continue investing in research and development and expanding its U.S. hiring and manufacturing base. Allowing for the effective continued use of the ITC is a critical step toward supporting investment by U.S. businesses in energy efficiency measures and enhancing manufacturer competitiveness.

"These extensions will help energy-intensive U.S. businesses stay competitive in the global market and help save U.S. jobs, as energy costs can be a significant expense for industrial and manufacturing companies. In addition, universities, hospitals, and the hospitality industry may benefit from access to reliable, highly efficient power," said Darren Jamison, President and Chief Executive Officer of Capstone. "Additionally, the research funds support Capstone's continued investment in more efficient CHP systems and adaptation of the product to burn alternative fuels like biogas and hydrogen," concluded Mr. Jamison.