Solar Tax Credits (ITC) have officially been extended for 5 more years?
BREAKING NOW…The $1.1 Trillion Omnibus Appropriations Bill has officially passed in the House of Representatives and the U.S. Senate. The Solar Energy Industry Association, who pushed for the passing of this legislation on behalf of the solar industry, expressed jubilation this morning as this is major victory for all solar companies. The White House has already indicated that President Barrack Obama will sign the bill as soon as it gets to his desk.
Both Republicans and Democrats admitted that this bill wasn’t perfect, but that’s what happens in a divided government. One of the main pieces of this legislation that directly affects renewable energy, but especially the solar industry, is a 5-year extension of the Investment Tax Credit (ITC). The credit is tax break for all new solar installations of 30% for the first three years of the extension, and begins to scale down in years 4 and 5 to 26% and 22% respectively.
It is estimated that extending this tax credit for solar installations will increase solar installations by 54% by 2020. Currently, the solar industry employs around 200,000 workers across the United States, and the industry continues to explode from a growth perspective. This is due in large part to continuing increases in the price of electricity in most markets, while simultaneously we are seeing the cost of solar generated energy fall.
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