The Investment Tax Credit
More than half a million American homes are powered by solar. The Investment Tax Credit (ITC), a 30% federal tax credit, has helped to make such large scale solar deployment possible in the U.S. However, the ITC is set to expire in December 2016 and, if it is not extended, long term solar development could be stalled and investments could diminish. Action is needed to encourage Congress to extend the ITC to support the continued growth of the solar industry.
How the ITC benefits homeowners and small businesses:
- Energy freedom: The solar investment tax credit allows homeowners to choose how they power their homes to and finance solar installation ownership.
- Small business development: The ITC helps thousands of small businesses across the country to install, contract, or work on residential systems.
- System ownership: Small or mid-size solar installers offer loan options for direct ownership of solar systems -- a direct result of the ITC.
- Investment: The ITC will provide market certainty for the solar industry to continue making long-term investments in solar energy projects. Competition and technological innovation - both of which lower overall system prices - also benefit.
- Cost reduction: With increased demand and manufacturing capacity, the average price of a solar panel has declined by more than 60 percent since the beginning of 2011.
- Job creation: 174,00 solar jobs exist in the US. Extending the ITC will ensure those jobs continue to grow.