Major News! The 30% Federal Solar Tax Credit May Be Back…
In the midst of a summer of record heat and other extreme weather events, the big news is Congress is poised to pass sweeping legislation that addresses energy security and climate change. The $370 billion reconciliation bill, called the Inflation Reduction Act of 2022, includes several renewable energy and climate measures expected to cut greenhouse gas emissions by 40% by 2030.
Great news for solar energy in particular, the bill calls for the current 26% federal Investment Tax Credit to increase to 30% of the cost of installed solar equipment for projects placed in service in 2022 through 2032 —an extension without phase-down for a steadfast 10 years! It would then step down to 26% in 2033 and 22% in 2034.
The bill also includes up to $30 billion in incentives for U.S. companies to manufacture solar panels, wind turbines, and batteries. It is expected to head to the Senate floor for a vote in early August. Fingers crossed!