COVID package passed by Congress includes tax credits for solar and wind
The COVID Relief Package passed by Congress includes an extension in a tax credit for solar power. That credit was supposed to be reduced at the first of the year.
“The investment tax credit was slated to go from 26% to 22% as of January 1st, 2021. So, this will keep it at 26%. So, that four percent additional amount of reduction of the cost will in fact help to put more people back to work which will help everybody in Michigan,” said John Freeman, Executive Director of the Great Lakes Renewable Energy Association.
That amounts to a 26% cut in the cost of solar power for your home or business.
“The big challenge for people that want to put solar in is that the cost is all up front and then you save money over the next 25 years. So, anything that can be done to reduce the upfront costs will make solar more affordable for more people and small businesses,” Freeman said.
The package also includes at one-year extension of a production tax credit which benefits wind power and a new 30% investment tax credit for offshore in projects that start construction between now and the end of 2025.
Freeman believes because of the bi-partisan support of the COVID Relief package, President Donald Trump will approve it.