This morning, the U.S. Congress passed a multi-year extension of the federal solar investment tax credit (ITC. ) The policy received broad bipartisan support by California’s congressional delegation and was backed by consumers from farmers in the Central Valley to high tech in Silicon Valley.
The 30% federal tax credit for homeowners and businesses had been scheduled to expire at the end of 2016. With urging from individuals, organizations, delegations and our active solar industry, congress members were made aware of the impact losing the credit would have on our economy and environment. Congress listened! The provision in the Omnibus Appropriations Bill, passed by Congress this morning, will extend the credit through 2021 with a gradual ramp down starting in 2019.
California’s solar industry employs 54,000 people statewide and has brought nearly $12 billion in investments to California in 2014. Policies such as the ITC policies have enabled the growth of local solar businesses and reduced energy costs for homeowners, businesses, schools and farmers across the state. Thanks to all, including our congressional delegation, who fought so hard to keep this tax credit and in doing so, the future of our industry strong!