U.S. Senate bill seeks to extend solar tax credit
- Solar developers would be eligible for the 30% federal investment tax credit for facilities that are under construction by 2017 under a bill introduced in the U.S. Senate.
- Under current rules, solar facilities must be completed by 2017 to get the tax credit, a key driver in spurring solar development.
- Some solar projects that are under development may be canceled if the ITC is not extended, according to the Solar Energy Industries Association.
The bill mirrors last year's change to the federal production tax credit for wind by changing the deadline's threshold from “completed” to “under construction.”
“As Congress considers comprehensive energy tax reform, we ought to provide certainty in the interim by extending the existing slate of renewable tax credits and providing parity for the solar industry,” said Senator Michael Bennet (D-Colorado), a co-sponsor of the bill.