FAST FIX: The Solar Investment Tax Credit Extension
I’ve fielded sooo many questions about the now-extended 30% solar investment tax credit (ITC), here briefly is the new law voted on as part of the omnibus spending bill passed by Congress and signed into law by President Obama December 18, 2015.
- Extends the 30% credit for both residential and commercial projects through the end of 2019;
- Then drops the credit to 26% in 2020 and 22% in 2021;
- Starting in 2022 the ITC drops to 10% going forward for commercial projects and goes away entirely for residential projects.
Note: Solar system owners can take the credit as soon as construction has commenced as opposed to when it’s placed into service, with this catch: to qualify for the larger credit, all projects commencing construction before the end of 2021 must be placed in service before the end of 2023.
You can find other quick facts about the ITC here courtesy of the Solar Energy Industries Association (SEIA).