Great news for businesses looking to go solar! On the heels of the landmark global climate agreement in Paris, the U.S. Congress today voted to extend the Investment Tax Credit (ITC) for solar energy investments by five years.
Unless Congress acts to extend it, the 30% Federal Investment Tax Credit (ITC) for commercial solar energy projects will step down to 10% on December 31, 2016. The ITC has been a major factor in America’s solar industry growth, helping solar installations increase by an average 48% annually since implemented in 2006.
The Hawaii Public Utilities Commission issued a ruling on October 13 that brings a halt to new net metering (NEM) applications on the Hawaiian Islands. Hawaii’s net metering program was highly successful, and instrumental in fostering the development of our robust solar industry, which leads the country in per capita installed solar capacity.
Although the 30% business investment tax credit (ITC) for installing solar expires at the end of 2016, the window for taking advantage of the ITC is actually much sooner. Unless Congress extends the ITC—which is an open question at this time—business owners should begin planning now for solar projects to be completed by the end of 2016.
You can never truly predict what legislation will actually pass through Congress and get signed by the President. Nevertheless, there are several expiring solar tax benefits in the EXPIRE Act of 2014 that we hope will get extended and continue to benefit commercial solar installations.
If you’re buying a solar energy system today, one of the most generous solar incentives that you’re entitled to is the 30% federal Investment Tax Credit (ITC). But not everyone who goes solar is eligible to receive it, and for those who do, there are different ways to calculate it. Below is a FAQ layman’s guide to the solar federal ITC, but please confirm all of this information with your tax adviser.
Georgia, New York, and the Mid-Atlantic States, Plus Emerging Markets: In Part 1 of Top U.S. States for Commercial and Large Scale Solar, we showed how sun potential and progressive solar policies in California, Colorado, and Hawaii made for an excellent environment for commercial solar today. In Part 2, we’ll look at policies in Georgia, New York, and the Mid-Atlantic states.
Bolstering our case that commercial solar continues to expand even as direct subsides fade into the sunset, last week the California Public Utilities Commission released its annual progress report on the California Solar Initiative (CSI), showing huge growth across the state.
With over 150,000 commercial and residential solar power systems now online, California leads the nation’s clean energy economy. As a result of this growth more than $10 billion in private-sector investment has flowed into the clean energy sector, and solar today employs more than 25,000 professionals in the state. Millions of Californians enjoy the benefits of low-priced solar energy delivered by systems installed on homes, businesses, schools and public facilities.
It’s tax time. Time to meet with your tax preparer and tally up with the man. A good time also to review one of the key benefits of residential and commercial solar – the federal solar Investment Tax Credit (ITC) – which allows solar owners to take a credit against their federal tax liability equal to 30% of the qualifying costs of the solar electric system.