capitol-buildingExtensions for wind energy’s $0.023/kWh production tax credit (PTC) and solar energy’s 30% federal investment tax credit (SOLAR ITC) were passed in exchange for lifting the ban on crude exports. Many democrats opposed of lifting the ban on oil exports but saw it as an opportunity to secure extensions for solar and wind.

So what are the tax credit extensions?

Wind has been extended through 2020 and will decline in value each year after December 2016 until it is phased out entirely. If the construction begins in 2017, the credit is reduced by 20%, 40% if construction begins in 2018, and 60% if construction begins in 2019.

Solar will gradually be drawn down through 2022. Solar facilities that begin construction before 2020 qualify for the full 30% tax credit. If construction begins in 2020, the facility qualifies for a 26% credit. If construction begins in 2021, the facility qualifies for a 22% credit. If construction starts after 2021 and begins before 2022 but is not placed in service before 2024 then it 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.

Source: http://www.utilitydive.com/news/congress-strikes-deal-to-extend-wind-solar-tax-credits-and-lift-oil-export/410947/

Source: http://www.nytimes.com/2015/12/19/us/congress-spending-bill.html?_r=0