The Michigan Energy Innovation Business Council (Michigan EIBC), praised the congressional deal reached early this morning to extend the solar investment tax credit (ITC) and wind production tax credit (PTC) for another five years. The PTC had already expired and was awaiting renewal, and the ITC was set to expire at the end of next year. The deal also extends or makes permanent tax credits for energy efficiency, advanced vehicles and biofuels.
“Through bipartisan action, Congress signals its continued support for growing the advanced energy industry in Michigan and provides much needed certainty,” said Michigan EIBC President Liesl Clark. “While all other sources continue to have permanent subsidies in place, the PTC and ITC help level the playing field between the power of the past and the power of the future.”
An agreement was reached between Congressional Republicans and Democrats to allow the oil export ban to be lifted while also extending both the ITC and PTC for five years. The PTC would be fully extended until 2016, with a 20 percent reduction in 2017 and further reductions until phased out in 2020. The current ITC, which allows 30 percent of the cost of installing solar to be written off, will be fully extended for the next five years. The credit will be reduced to 26 percent in 2020, then to a 22 percent credit in 2021 and finally to a 10 percent credit at the end of that year. Furthermore, solar purchasers would now qualify for the credit once construction commenced; instead of once the array was connected.