COVID-19 Stimulus Relief Bill & Tax Credit Extension

COVID-19 Relief Bill

On Monday, congressional leaders reached a bipartisan deal in form of a $1.4 trillion spending package which includes several provisions to boost investment in clean energy, including an extension on renewable energy tax credits to incentivize the building of new solar and wind plants, tax credits for carbon capture, biofuels and other alternative fuel cells and energy efficiency, as well as a $900 billion COVID-19 virus relief spending bill. 

“Extending the solar tax incentives is a bipartisan vote of support for the renewable industry and the hundreds of thousands of Americans building our clean energy future. These policies will help get people back to work, accelerating our economic recovery and achieving greenhouse gas emissions reductions that scientists tell us are necessary to protect our climate.”

Gregory Wetstone, president and CEO of the American Council Of Renewable Energy.

The solar investment tax credit (ITC), which fell from 30% in January, and was scheduled to drop down to 22% in 2021, will now be extended for all market segments (residential, commercial, and utility-scale) for two years at the current 26%, drop to 22% in 2023, and in 2024, the residential market will end completely while the commercial and utility markets permanently sit at 10%.

Congress agrees on a deal with stimulus checks and tax credit extensions
Congress agrees on a deal with stimulus checks and tax credit extensions in response to COVID-19 pandemic. Photo from USAtoday.om

“We appreciate that Congress has recognized clean energy’s significant contributions to our nation’s economy and role in providing jobs and investments during the recovery from the COVID-19 pandemic.”

Heather Zichal, CEO of the American Clean Power Association in a statement.

“With 13% of the clean energy workforce out of a job this holiday season due to COVID-19, we are grateful that lawmakers included emergency relief measures for the renewable sector in this package.”

Gregory Wetstone, president and CEO of the American Council Of Renewable Energy.

In 2020, congress looks to be more generous to renewable energy industries, specifically solar and wind power. This bill is a gracious start to decreasing greenhouse gas emissions, stimulating investment, and increasing efficiency in the generation and distribution of renewable energy.

“We are heartened to see Congress step up to provide Americans with some relief after our country has been mired in a public health and economic disaster. The provisions that help solar workers and businesses are a result of SEIA’s tireless advocacy throughout this difficult year, and I want to thank our champions in Congress for understanding the immense economic value the solar industry offers to communities across the country.”

Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA).