Raised Bill No. 5442, introduced in the February Session, 2024, addresses the utilization of federal funds for energy storage systems and the potential changes to state taxation of these systems. The bill proposes to amend Section 16-243ee of the general statutes by adding a new subsection (e), which mandates the Public Utilities Regulatory Authority to expand incentives for electric energy storage resources by authorizing the use of any federal funds available under the Inflation Reduction Act of 2022. Additionally, the Connecticut Green Bank or the Department of Energy and Environmental Protection is permitted to transfer federal funds to electric distribution companies for the purpose of expanding incentives within the program authorized by the Public Utilities Regulatory Authority.

Furthermore, the bill requires the Office of Policy and Management to conduct a study on the feasibility and potential benefits of exempting energy storage systems from property tax and to consider implementing a uniform tax on the storage capacity of such systems. The study will include a review of the current tax framework, how other states tax energy storage systems, an evaluation of the incentives for systems that provide system-wide benefits, and recommendations for legislative changes concerning the taxation of energy storage systems. The findings of this study are to be reported to the joint standing committee of the General Assembly having cognizance of matters relating to energy and technology by January 1, 2025. The bill's purpose is to ensure the use of federal funds to enhance energy storage battery programs and to evaluate potential changes in their taxation. There are no deletions indicated in the provided text.

Statutes affected:
Raised Bill: 16-243ee