Solar tax credit is renewed

Solar tax credit is renewed

In recent months, the debate was up on whether or not to end the solar tax credit or to continue it. Utility companies, like Southern California Edison and the Department of Water and Power faced decline in profitability as a result of solar panel’s increasing popularity. As the rivalry brewed between utility companies and solar panel companies, both parties fearing the other would interfere with revenue, the CPUC was faced with the decision to cut federal tax incentives to prospective homeowners interested in solar panels.

Read more about the backlash utility companies expressed again solar, here.

With a deadline in December, a financial plan was finally presented. Under an omnibus spending bill passed by congress, solar will receive funding once again for homeowners looking to install solar. As a part of a $1.15 trillion federal spending bill, incentives were agreed to be renewed by Congress.

The ITC, or Investment Tax Credit, is what allows solar companies to claim the 30% federal tax credit on solar installations. While rumors speculated that the solar tax credits might expire come 2017, the ITC has been extended.

Rooftop solar will receive a 30% tax credit up until 2019 in which the tax credit will eventually decline to 10% by 2022.

Photo credit: Argonne National Laboratory via Foter.com / CC BY-NC-SA

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