The Dynamic Glass Act currently defines electrochromic glass as specialized glass that uses electricity to heat or cool a building, reducing energy use and costs. Photo: SageGlass.

A proposal to extend the investment tax credit (ITC) for electrochromic glass was introduced to the United States Senate this past Friday. The proposal (Dynamic Glass 2.0 Act) was submitted by Senators Edward J. Markey (D-Massachusetts) and Roger Wicker (R-Mississippi). It seeks to change the tax credit eligibility from projects beginning before Jan. 1, 2025, to projects beginning before Jan. 1, 2033.

The original Dynamic Glass Act was introduced and referred to the House Committee on Ways and Means in 2021. It sought to include electrochromic glass as an energy property for the purpose of the 30% energy tax credit. It was eventually incorporated into the tax code via the Inflation Reduction Act (IRA) of 2022. The law currently defines electrochromic glass as specialized glass that uses electricity to heat or cool a building, reducing energy use and costs.

“Dynamic glass helps lower energy bills for businesses and homeowners, but many Americans cannot afford the upfront cost of this technology,” says Wicker. “This legislation provides a tax credit to make access to this specialized glass easier and creates many manufacturing jobs across the country.”

The tax incentives in the IRA work by reducing the costs of building qualifying energy projects and equipment or by incentivizing the production of energy or manufactured goods. The base rate for the tax credit is 6%. To achieve a 30% tax credit for electrochromic glass, the building using the units must have a maximum net energy output of 1 megawatt (MW) of electricity or thermal energy.

However, if the structure’s output exceeds 1 MW, building owners could still be eligible for the 30% credit if all project contributors (laborers, contractors and subcontractors) are paid wages at prevailing rates. Employing apprentices could also be used to obtain the 30% tax credit.

The proposal to extend the investment tax credit for electrochromic glass follows the recently released proposed guidance on the Clean Electricity Production Credit and Clean Electricity Investment Credit. The credits incentivize any clean energy facility that achieves zero greenhouse gas emissions, allowing new zero-greenhouse gas emission technologies to develop over time.

According to the U.S. Department of Treasury, the Clean Electricity Investment Credit is the next phase of the White House’s plan to promote clean energy products. Officials say the IRA’s production tax credit will be replaced by the Clean Electricity Investment Credit after Jan. 1, 2025. According to a SageGlass memo, the Clean Electricity Investment Credit will not cover glass products that do not generate energy, such as products that use a low electricity voltage to darken glass, which then absorbs and reflects away the sun’s heat and glare.

Leave a Reply

Your email address will not be published. Required fields are marked *