Bipartisan Invoice Extends the Funding Tax Credit score
Congress signed a bipartisan agreement that includes key emergency measures for the renewable energy industry, including a two-year extension of the Investment Tax Credit (ITC) – critical for the solar industry.
The full legislative package combines a $ 900 billion COVID-19 relief package and a collective spending bill for 2021 with tax expanders and energy policy changes. The decision comes after the solar industry has been campaigning for these changes for several months.
“With 13% of the clean energy workforce out of work this holiday season due to COVID-19, we are grateful that lawmakers included emergency response for the renewable sector in this package,” said Gregory Wetstone, President and CEO of the American Council for renewable energies (ACORE). “The expansion of the solar tax incentives is a non-partisan vote in support of the renewable industry and the hundreds of thousands of Americans who are shaping our clean energy future. These measures will help get people back to work, accelerate our economic recovery, and reduce greenhouse gas emissions that scientists say are necessary to protect our climate. “
Under this legislation, the Solar-ITC will stay at 26% for projects starting construction in 2021 and 2022, 22% in 2023 and 10% in 2024 for commercial projects, while the home loan ends completely. Companies that start building projects in 2021 would have four years left to get their projects up and running to take advantage of the ITC. The legal deadline for commissioned projects has been reset to January 1, 2026.
“We are pleased to see that Congress is stepping up to provide some relief to Americans after our country experiences a public health and economic disaster,” said Abigail Ross Hopper, President and CEO of Solar Energy Industries Association (SEIA). “This pandemic has taken an immeasurable toll on American families, and our deepest condolences go to those who have lost loved ones and those who are suffering economically as the crisis continues. The regulations helping solar workers and businesses are the result of SEIA’s relentless advocacy during this difficult year. I want to thank our champions in Congress for understanding the immense economic value that the solar industry offers communities across the country. “