The Solar Energy Investment Tax Credit is a very important federal policy to promote solar energy in the United States. In 2015, the Solar Energy Industries Association advocated for the extension of the renewable tax credit to increase the investments in the solar and wind industry in order to provide business certainty to investors and project developers. The solar power industry expected the tax credits to expire in January 1, 2015. The Solar Investment Tax Credit is continuing to drive advancements in the industry and create jobs across the country. This extension will help result in billions of dollars in new investments and thousands of megawatts in added capacity.
What is the Solar Investment Tax Credit? The Solar Investment Tax …show more content…
The tax credit accounted for any projects that took place between January 1, 2006 and December 31, 2007. The Tax Relief and Health Care Act extended these credits for another year in 2006. In 2008, the Emergency Economic Stabilization Act extended the tax credit again for eight more years in residential and commercial projects. This also eliminated the monetary cap for residential solar electric installations, permitted utilities and allowed the credit to be used against the alternative minimum tax so they could quality for the credit. The Omnibus Appropriations Act created the last and most current extension on the renewable tax credits, in 2015. This act included a five-year extension for residential and commercial tax credits as earlier described. For projects completed by the end of 2023, this act changed the previous placed in service standard for qualification for the credit to a commence construction …show more content…
As a result of the tax extension, solar prices are predicted to fall while installation rates and technological efficiencies are predicted to rise. The solar investment tax credit is said to be a great success story and it is expected to continue over the next several years. Roughly 27 gigawatts of solar energy was installed in the US at the end of 2015, and it is expected to reach 100 gigawatts by the end of 2020. Around 210,000 Americas are currently employed in the solar industry and that number is expected to double to 420,000 by the end of 2020. While doubling jobs, the tax credit also spurred roughly $140 billion dollars in economic activity. The continued rise of success of the solar investment tax credits demonstrate that long-term federal tax incentives can drive economic growth, reduce prices, and create
What is the Solar Investment Tax Credit? The Solar Investment Tax …show more content…
The tax credit accounted for any projects that took place between January 1, 2006 and December 31, 2007. The Tax Relief and Health Care Act extended these credits for another year in 2006. In 2008, the Emergency Economic Stabilization Act extended the tax credit again for eight more years in residential and commercial projects. This also eliminated the monetary cap for residential solar electric installations, permitted utilities and allowed the credit to be used against the alternative minimum tax so they could quality for the credit. The Omnibus Appropriations Act created the last and most current extension on the renewable tax credits, in 2015. This act included a five-year extension for residential and commercial tax credits as earlier described. For projects completed by the end of 2023, this act changed the previous placed in service standard for qualification for the credit to a commence construction …show more content…
As a result of the tax extension, solar prices are predicted to fall while installation rates and technological efficiencies are predicted to rise. The solar investment tax credit is said to be a great success story and it is expected to continue over the next several years. Roughly 27 gigawatts of solar energy was installed in the US at the end of 2015, and it is expected to reach 100 gigawatts by the end of 2020. Around 210,000 Americas are currently employed in the solar industry and that number is expected to double to 420,000 by the end of 2020. While doubling jobs, the tax credit also spurred roughly $140 billion dollars in economic activity. The continued rise of success of the solar investment tax credits demonstrate that long-term federal tax incentives can drive economic growth, reduce prices, and create