TAX CREDIT EXTENDED
The federal government has extended the Investment Tax Credit (ITC) for solar energy investments through 2019. It provides businesses that install solar panels a tax credit equal to 30% of the total solar installation price. The credit will ramp down to 26% in 2020, 22% in 2021 and to 10% in 2022 for commercial solar installations.
The bill also includes a “commence construction clause” that extends the credit to solar projects that have started development before the deadlines listed above, as long as they are completed by the end of 2023. In other words, new solar projects need not accelerate dramatically to finish construction in order to qualify for these tax credits.