On December 18, 2015, Congress passed a multi-year extension of the 30% investment tax credit (ITC) for solar and a 2.3 cent production tax credit (PTC) for wind. The tax credit extensions were included in a bipartisan $1.1 trillion spending bill, which included the removal of the ban to export oil.
The extension of the tax credits provides the solar and wind industries multi-year certainty and, for the first time, a gradual ramp down. The extensions, which are surprising in scope, will drive significant additional growth in both industries. For example, GTM Research estimates the action will result in 25 gigawatts of additional solar through 2020—a 54% increase over prior estimates.
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