On December 16th, 2015 Congress and the House of Representatives passed a $1.1 trillion omnibus spending bill. There was a provision in this bill to extend the Solar Investment Tax Credit (ITC), as well as a similar tax credit for wind power, for 5 more years in total. The tax credit applies to projects that have begun construction. In the past, the ITC applied only to projects that had been completed.
According to the omnibus spending bill text, the breakdown of tax credit percentages works out like this. For three years (Jan. 2017 – Jan. 2020) the tax credit will be 30% of the cost of the system. After this, the tax credit will begin to phase-out. In 2020, the tax credit will be 26% of the cost of the system. In 2021, the tax credit will be 22% of the cost of the system. In 2022 the tax credit will be 10% of the cost of the system. The tax credit will end in January 2023.
Contact us now at 612-888-9599 or on our website in order to make the most of the Investment Tax Credit for your solar project!