The ITC Extension Passes Congress
Congress strikes deal to extend wind and solar tax credits, that were set to expire at the end of 2016 and lift the oil export ban. The ITC extension continues the 30% federal tax credits through 2019.
*Please note this is dependent on veto or pass of the entire federal spending bill. Unless Congress wants another government shutdown, in an election year, this looks like it will pass.
Solar facilities that begin construction before 2020 could qualify for the full 30% ITC under the tentative deal, according to Gregory Jenner, the co-chair of the Stoel Rives energy team, but the credits would phase out after that.
“If construction begins in 2020, the facility qualifies for a 26% credit,” he wrote. “If construction begins in 2021, the facility qualifies for a 22% credit.”
Facilities with construction starting after 2021 — or if construction begins before 2022 but the facility is not placed in service before 2024 — would qualify for a 10% credit. Residential solar systems would receive the same credits, but they would apply when the system is placed in service, rather than when construction began, according to Jenner, a former Treasury Department tax official.
This will make a big difference in many states in residential rack re-sale(s) and commercial racking too.