Tax Abatement for Battery Installations and Manufacturers

In many instances, state legislatures negotiate tax incentives on a company-by-company basis. While this method of negotiating may work well with large companies that can afford to negotiate with several states simultaneously, a uniform tax incentive for battery companies could attract more small- and medium-sized companies in the industry.

Instead of negotiating tax abatements with each individual company, states could establish or expand a tax abatement program to include battery deployments and manufacturers. Passing a uniform tax abatement for all battery deployments and manufacturers, rather than negotiating project-by-project with manufacturers, would demonstrate to companies around the globe that the state is ready to compete for small- and medium-sized battery firms and good-paying, skilled manufacturing jobs.

To attract more large battery manufacturers and suppliers, a state could add tiered incentives to a manufacturing tax abatement program. As a company’s investment increases, the length and percentage of the tax abatement could ramp up. Passing a tiered incentive program would demonstrate to battery manufacturers that the state is prepared to compete for battery manufacturing facilities of every size.