It’s official: The U.S. solar industry will not fall off a cliff come 2017. Solar ITC officially extended through 2021. The U.S. Congress agreed on a bill that extends the solar investment tax credit (ITC) by five additional years, as part of a $1.15 trillion spending bill.
As summarized by research firm IHS, key details of the extension include:
- The ITC will be extended from Dec. 31, 2016, and instead stepped down from 30% to 10% until 2024. Projects that start construction by 2019 will receive the current 30% ITC, while projects that begin construction in 2020 and 2021 will receive 26% and 22%, respectively. All projects must be completed by 2024 to obtain these elevated ITC rates.
- For residential photovoltaic (PV) systems, a similar tax credit phase-out applies until December 31, 2021, after which the tax credit scheme ends.