Solar Investment Tax Credit
In 2015, Congress passed a law providing a 30% investment tax credit for solar developers. Since then, there has been much confusion about the sunset provisions and whether construction must be started or completed prior to the sunset date. The IRS issued guidance last week, clarifying that developers have four years to begin a project to qualify for the ITC, which then begins to wind down from 30% to 10% based on the construction and service dates of the project. Additionally, it provided further clarity on tax incentive deadlines for small wind projects, fuel cell power plants, geothermal heat pumps and more.
To read a copy of the guidance document, click here.