As of December 21, 2020, Congress passed a federal spending package that extended the 26% solar Investment Tax Credit (ITC) for two years. Originally, the ITC was set to step down on the first of January 2021 from 26% to 22%, posing a significant 4% drop in tax incentives for those considering investing in solar. The extension of the ITC demonstrates a bipartisan willingness and commitment to providing relief to Americans during the COVID-19 pandemic and aid in the stabilization of the economy through clean energy and renewables.
Chief Development Officer and Co-Founder of Solect Energy Craig Huntley sees this as an encouraging step in the future of clean energy, saying “Congress’s decision to extend the 26% tax credit for solar and renewable projects is promising and highlights the U.S.’s ever-growing demand for sustainable, cost-effective energy sources. I believe that by incentivizing Americans to invest in green energy, while also providing much-needed economic relief during this difficult time provides a great opportunity to expand jobs, improve savings, and provide a better environment for everyone.”
Included in the recently approved federal spending package is the Better Energy Storage Technology (BEST) Act, which for the next five years will provide meaningful funding to serve as the impetus for the expansion of energy storage research and development.