Tax credit extension good news for solar community
Last week, President Obama signed the Omnibus Appropriations Act. Included in the legislation was an extension of the federal solar customer tax credit. This credit was set to expire at the end of next year. The credit allows solar customers to deduct 30% of the cost of their system off their taxes. The customer tax credit puts solar on a level playing field with other electricity sources.
The new legislation extends this tax credit at 30% through 2019. The credit then lowers to 26% in 2020 and 22% in 2021. It expires in 2022. Solar supporters fought hard to extend this important solar policy, as its expiration would have harmed everyone’s ability to access clean, locally-produced energy.
This smart policy has helped the average price of a solar panel decline by more than 60 percent since the beginning of 2011. There are now 174,000 Americans working in the solar industry. The tax credit’s extension will make it possible for more people to go solar.