Investment Tax Credit - Critical for Solar Development
The Investment Tax Credit (ITC), a 30 percent federal tax credit for solar systems on residential and commercial properties, is one of the most important federal policy mechanisms for supporting the development of solar energy in the United States. In 2014, the solar industry added jobs at a rate that was 10 times faster than the rest of the economy, fueled in large part by the ITC’s important tax benefits for solar producers.
Under current law, the ITC only remains in effect through December 31, 2016.
If the ITC is allowed to expire, the commercial credit will drop to 10 percent and the residential credit will drop to zero. Many advocates feel this credit loss will have a significant negative impact on solar development and cite how the Production Tax Credit was allowed to expire last December which wreaked havoc on the wind industry.
Tell Congress To Support Clean Energy
While continued support of the clean energy sector seems like an "no-brainer" to many (and the permanent extension of the ITC is actually a part of Obama's 2016 draft budget), some large corporate polluters are intent on blocking the extension of the ITC.