Provisions of solar investment tax credit (ITC) extension & expansion

October 13, 2008 · Filed Under Electric Power, Energy Self Sufficiency, Tax Incentives & Legislation 

Last week I highlighted some of the energy-related tax incentives that passed with the bailout bill earlier this month. One of those incentives is the 8-yr extension and expansion of the solar investment tax credit (ITC).

Federal Solar Tax Credits Extended for 8 Years (Green Energy Ohio)

This landmark legislation is part of H.R. 1424, the Emergency Economic Stabilization Act of 2008, designed to address the U.S. financial crisis. It is the most significant federal policy ever enacted for the solar industry. The solar investment tax credit (ITC) provisions will:

  • Extend for 8 years the 30-percent tax credit for both residential and commercial solar installations;
  • Eliminate the $2,000 monetary cap for residential solar electric installations, creating a true 30-percent tax credit (effective for property placed in service after December 31, 2008);
  • Eliminate the prohibition on utilities from benefiting from the credit;
  • Allow Alternative Minimum Tax (AMT) filers, both businesses and individuals, to take the credit;
  • Authorize $800 million for clean energy bonds for renewable energy generating facilities, including solar.

According to a Navigant Consulting report, extending the ITC is expected to create 440,000 jobs and encourage $325 billion of private investment in the solar industry.

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One Response to “Provisions of solar investment tax credit (ITC) extension & expansion”

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