Here are some highlights from a recent article in SOLAR INDUSTRY MAGAZINE.
If several recently introduced legislative bills give any indication, Congress has heard the call from solar energy advocates to modify the investment tax credit (ITC).
The ITC, which expires Dec. 31, 2021, currently pays a credit of 26% for qualifying projects. If no changes are made, the credit shrinks to 22% in 2021 and disappears completely after that!
In recent months, both the House and Senate have introduced legislation that not only calls for an ITC extension but also stipulates that solar projects should qualify for the tax incentive based on when they start, as opposed to when they are placed into service.
On Feb. 6, Sens. Dean Heller, R-Nev., and Michael Bennett, D-Colo., co-sponsored the Renewable Energy Parity Act of 2014, which would allow developers to qualify for the ITC if projects are under construction before the credit’s expiration date, rather than having to wait until those projects are completed and in service.
In August, Rep. Paul Clark, R-Calif., introduced H.R. 3017, the Renewable Energy Construction and Investment Parity Act of 2013, which also extends the energy tax credit to solar energy, fuel cell, microturbine, combined heat and power systems, small wind energy, and thermal energy properties – the construction of which begins before Jan. 1, 2017.
While the ITC push appears to be gaining traction – as evidenced by the support of House and Senate Republicans – sources express doubt that any of the bills by themselves could pass, given the grid-locked Congress.