Solar got a win last month with the ITC renewal: Projects will continue to receive 26% off for two more years
On December 21, 2020 the solar industry got an exciting suprise as the Federal Tax Credit (ITC) was extended for two more years as part of the COVID-19 relief spending bill. Instead of dropping to 22% in 2021 and dropping off in 2022, the Federal Tax Credit will remain for 2 more years at 26%, ensuring folks across the country get more affordable access to solar.
The tax credit applies to all residential, commercial, industrial and utiltiy-scale solar projects. The extension of the ITC has been supported by many outside the industry and accross the country. The extension of the ITC means the country will have the opportunity to build a stronger, more reliable and more accessible energy economy.
For many families, with the ITC, solar can be paid off in only a few years, and businesses see an even faster payoff. In Oregon, most businesses are able to pay off their solar in less than 5 years- and after the system is paid off, they’re getting free energy from the sun.
Projects must begin construction in 2021 and 2022 and be fully complete by 2025 to receive the 26% credit. 26% of the eligible costs related to a solar project can be taken as a federal tax credit. This exciting news is a win for clean energy proponents everywhere.