FOR IMMEDIATE RELEASE
December 22, 2020
Solar Investment Tax Credit (ITC) Extended for 2 Years
St. Paul, MN—Congress has passed a wide-reaching COVID-19 relief package that includes benefits for the solar industry. The legislative package includes a two-year extension of the solar Investment Tax Credit (ITC), which will now remain at 26% for projects that begin construction in 2021 and 2022, step down to 22% in 2023, and down again to 10% in 2024 for commercial projects while the residential credit ends completely in 2024.
The $900 billion relief package also includes funding for research and development—including distributed energy deployment and support for better access to federal lands for renewable projects.
For energy storage, the legislation includes the Better Energy Storage Technology (BEST) Act, which grants $1 billion over five years to federal innovation investments in storage technology research and development.
Following is a statement by David Shaffer, MnSEIA's Executive Director:
"We are very excited for what an ITC extension will mean for the solar industry here in Minnesota and across the country. The Investment Tax Credit is critical to support the continued success of a young and growing solar industry, and an extension will help us continue to grow at a rapid pace. Solar has proven to be a strong and resilient industry during the pandemic, providing stable jobs to local workers and economic development in our communities. Extending the ITC in a COVID relief package shows that Congress understands the immense economic and job benefits of the solar industry. They know supporting us means supporting the economy. We are excited that this legislation will help our member companies and their workers.
SEIA has been working tirelessly to extend the ITC for years and we applaud their hard work and dedication. I want to thank them for their leadership, for their successful lobbying work, and for their communication with their affiliates, like MnSEIA. I also want to thank their members and ours for continuing to invest in the lobbying activity of SEIA and affiliate organizations. Members are the backbone of our work. You make sure we have the resources to get things like this done.
The ITC got extended for the solar industry because of the power of our collective voice. Now is the time to celebrate, but let's not get complacent. The Minnesota Legislative Session starts two weeks from today—and more wins are possible. Together we can keep moving solar forward in 2021."
MnSEIA is a 501(c)(6) trade association that serves to move Minnesota solar and storage forward as the voice of the Minnesota solar and storage industries. Representing over one hundred and forty member companies, MnSEIA pursues its mission to grow solar energy industries as part of Minnesota’s clean energy transition by delivering strong public policy, education, job creation and sustainable industry development. MnSEIA pursues its policy work through active engagements at the Minnesota Legislature, the Minnesota Public Utilities Commission, and in other various agency matters. Find out more at www.mnseia.org.
Abbi Morgan, Director of Business Development & Communications