In July of 2019, a bipartisan group of lawmakers in Washington, D.C. proposed a five-year extension of the Federal Solar Investment Tax Credit (Solar ITC).
The Renewable Energy Extension Act was proposed by Paul Cook (R) and Mike Thompson (D) of California, and Brian Fitzpatrick (R) of Pennsylvania. According to the US Congress website, currently, there are 0 sponsors from Kansas or Missouri. The H.R. 3961 – Renewable Energy Extension Act of 2019 has support from 78 cosponsors, and the S.2289 Renewable Energy Extension Act of 2019 has support from 18.
In November of 2019, The House Ways and Means Committee released a comprehensive clean energy tax package that includes a five-year extension of the 30% solar investment tax credit (ITC) and new incentives for energy storage. Twenty-eight members of Congress addressed a letter to House of Representatives Speaker Nancy Pelosi, urging that she prioritize legislation that would extend the ITC and include it in year-end sessions.
What is the Solar ITC?
The ITC is a federal tax subsidy that gives solar system owners a 30% return on a project’s total tax liability in any market segment. The tax credit is scheduled to drop to 26% on Jan 1, 2020, then 22% in 2021. In 2022, it will decrease to 10% for utility and commercial solar projects and expire entirely for the residential market. See if your solar project is eligible for the full 30% federal tax credit.
“The ITC is the strongest policy there is to support clean energy development, grow the economy, create jobs and meaningfully cut emissions,” said Abigail Ross Hopper, CEO of the Solar Energy Industries Association (SEIA). Since the ITC was enacted in 2006, the solar industry has:
- Created more than 200,000 jobs.
- Invested $140 billion into the U.S. economy
- Increased solar deployment by more than 10,000%
- Grown by an average annual rate of 52% each year. And, the market continues to expand from traditional coastal strongholds like California into resource-rich states like Texas and Florida, as well as into the midwest.
A Recent poll (see findings) shows that Americans want Congress to Extend Clean Energy Tax Incentives.
Solar means homeowners and business owners have more control over their electric bills and more control over their comfort. It’s a growing industry in the United States that leads to a cleaner environment. You can help support the Renewable Energy Extension Act by taking ACTION. Make sure your representatives in Washington know how much the solar industry means to their constituents.