Solar companies call for extension of solar investment tax credits
A coalition of nearly 1,000 solar companies led by the Solar Energy Industries Association (SEIA) sent a letter to Congress Wednesday urging the extension of the Section 48 and Section 25D solar investment tax credits (ITC).
The ITC is a 30 percent tax credit or solar systems on residential and commercial properties. The Section 25D credit applies to residential properties, and the Section 48 credit applies to customer-sited commercial solar systems and large-scale utility solar farms.
The ITC was initially enacted in 2006 and was extended in 2015. Under current law, the value of the credits will start to decrease after 2019.
“If you want to show a commitment to addressing climate change, you extend the solar ITC,” SEIA President and CEO Abigail Ross Hopper said. “Supporting this proven policy is the first clear victory that lawmakers can deliver to Americans on climate change. As we debate long-term solutions, now is not the time to abandon the single most successful policy on the books to deploy clean energy in the near-term.”
SEIA noted that, since the initial passage of the ITC, solar deployment has increased by 10,000 percent. There are now more than two million U.S. solar installations, which represent 2.5 percent of energy production in the United States. SEIA also said that the ITC has helped to create more than 200,000 U.S. jobs and add approximately $140 billion in private sector investment
“The ITC extension will help maintain a stable market for continued solar development in the utility sector,” George Hershman, president of Swinerton Renewable Energy, said. “This directly translates into investments in our nation’s rural communities by supporting more jobs across the solar value chain, providing long-term energy solutions at a lower cost to ratepayers, and increasing the state and local tax base. The solar ITC is a win for workers, ratepayers, and for America’s energy future.”
The letter represents the beginning of a multi-pronged advocacy campaign led by SEIA and its partners. The coalition expects to make significant investments in lobbying, advertising, media outreach, social media, and more as part of the campaign.
