Solar Tax Credit Gets Full Life
IRS gives big solar two more years; The IRS, via Notice 2018-59, has modified the Investment Tax Credit to allow solar projects to begin construction by the end of the 2019, and still get the 30% – versus being in service by that date.
John Weaver, June 25, 2018 (PV Magazine)
“…[Medium- and large-scale solar power projects that expect to take a year to two (or more) for development and construction just got a two year extension on the Investment Tax Credit (ITC)…[A new Internal Revenue Service (IRS) ruling officially replaced the requirement to bring solar projects online by the tax credit’s deadline date with a requirement to begin construction by a deadline date. That means that instead of the solar project having to finish by December 31st, 2019, it must now begin construction, defined as 5% of the work or investment, on or by that date to qualify for 30% tax credit. The same time schedule] applies to the follow two years and their 26% and 22% tax credits…This two year window will give investors and utilities reasonable motivation to invest in more projects, even as end of year dates arrive. And this in turn can have repercussions for fossil generation, as Xcel noted that this would allow it to close two coal plants a decade early…[T]here could also be projects whose timelines are extended…under the expectation of continued declines in hardware pricing…” click here for more