The Solar Investment Tax Credit (ITC) is expected to expire in 2016. The solar energy industry is trying to get another extension to last until the year 2022. They believe that without this critical subsidy, then they will lose 80,000 jobs in just 2017 alone.
- The ITC is a 30 percent tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties.
- The multiple-year extension of the residential and commercial solar ITC has helped annual solar installation grow by over 1,600 percent since the ITC was implemented in 2006 — a compound annual growth rate of 76 percent.
CEO of solar developer Greenwood Energy calls for reducing the ITC to 10 in 2017 and letting it expire in 2018.
As of December 2013, the United States Treasury Department had awarded more than $4.4 billion to solar projects.
Once the ITC expires, the solar energy market will level out, losing the inflated strength it has been receiving from the ITC and become more competitive within the energy market.