U.S. Lawmakers Propose Bill to Extend Solar Tax Credit

U.S. Senator Catherine Cortez Masto, a Democrat representing Nevada, introduced legislation on July 25 that would provide a five-year extension of the solar investment tax credit at its full 30 percent value.

Representative Mike Thompson, a California Democrat, joined by Republican Representatives Paul Cook of California and Brian Fitzpatrick of Pennsylvania, introduced a bipartisan companion bill in the House.

Under current law, the ITC will remain at 30 percent for projects that started through 2019, reduce to 26 percent in 2020, then to 22 percent in 2021. The commercial and utility credit steps down to 10 percent in 2022, while the residential credit sunsets.

The legislation, titled “Renewable Energy Extension Act,” would extend the Section 48 business energy investment tax credit and the 25D tax credit for residential energy efficient property, which includes technologies related to solar, fuel cells, geothermal, and microturbines.

The Solar Energy Industries Association urged lawmakers to pass the legislation, saying that the “ITC is the strongest policy there is to support clean energy development, grow the economy, create jobs, and meaningfully cut emissions.”

Since the investment tax credit was first passed in 2005, the solar industry has seen over $140 billion in private investment with solar deployment rising by over 10,000 percent, according to the SEIA.