Solar Investment Tax Credit Extension Included in COVID-19 Relief Bill Signed by President Trump
On December 27, 2020, President Trump signed the massive COVID-19 relief bill passed by both houses of Congress last week (the “Bill”), which includes an extension of the Solar Investment Tax Credit (“ITC”).
The Bill delays the scheduled step down of the ITC for two years. As such, the ITC will remain at 26% for projects that begin construction (or meet the 5% safe harbor) on or before December 31, 2022. The ITC will then step down to 22% in 2023 and 10% in 2024 and beyond for commercial projects. The ITC will end for residential projects on December 31, 2023.
The Bill is welcome news for investors and developers who were expecting a step down of the ITC in the face of the COVID-19 pandemic.