Congress extends federal tax credit for solar
December 21, 2015
Christmas came early for the solar industry on Friday when Congress voted to extend the federal Investment Tax Credit (ITC). The ITC is a 30 percent tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties.
Before Friday, the ITC was set to sunset for for residential solar systems by the end of 2016 and decrease to 10% for commerical systems. Now, the ITC will be extended for another three years. It will then ramp down incrementally through 2021, and remain at 10 percent permanently beginning in 2022.
