Relief package includes two-year extension of solar ITC at 26 percent
- December 21, 2020
The pandemic relief package expected to get final passage today (Dec. 21) in Congress includes a two-year ITC extension. From Roll Call:
Clean energy industries would also be winners under the tax agreement. Investment tax credits for solar equipment installations would be extended at 26 percent for two more years, rather than stepping down to 22 percent next year and then 10 percent the following year. A new investment tax credit for “waste heat to power” systems that capture heat from industrial generation would also be added to the tax code.
Tax credits for production of wind-powered electricity would get extended for another year, and credits for offshore wind power facilities would be available through 2025. Credits for carbon capture and sequestration projects would also be renewed through 2025.
“The agreement extends and expands tax incentives for clean energy that have been critical in moving us toward a low-carbon economy,” Senate Finance ranking member Ron Wyden, D-Ore., said in a statement. “Importantly, breaks for solar and wind power have been preserved, and incentives for making buildings more energy efficient have been made permanent.”
We’ll have more later today — hopefully after final passage.