SolarCity Corp. employees install solar panels on the roof of a home in Kendall Park, N.J.
Credit: Michael Nagle/Bloomberg
Just two weeks before it was set to expire, a tax credit for installing renewable energy systems, such as solar and wind power, has been extended for five years by Congress. (emphasis added)
The U.S. government’s investment tax credit (ITC), which went into affect in 2006, was the main catalyst for growth of solar installations in the U.S. The ITC offers a tax credit equal to 30% of a solar or wind project’s costs.
Analyst forecasts had indicated there would be a major decline in solar and wind power growth after the ITC expired in 2016 and dropped to a more permanent 10% credit.
In a surprise move, however, U.S. lawmakers agreed to extend tax credits for solar and wind as part of a larger package of tax breaks and spending plans.
“This is massive,” said Ethan Zindler, head […]
