SEIA Applauds Bipartisan “Commence Construction” Legislation for ITC

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Calling it “critically important,” the Solar Energy Industries Association applauds “commence construction” legislation introduced yesterday in the senate. The bipartisan legislation would allow U.S. solar companies to make use of the Investment Tax Credit.

Many in the solar industry have been concerned about what will happen when the Investment Tax Credit (ITC) drops from 30% to 10% at the end of 2016. While analysts believe that by then, the industry will be robust enough to do without it, for now the 30% tax credit is still a critical factor in getting projects built.

An issue in the spotlight now is that the 30% ITC policy requires that projects be in service before it expires. However, many solar energy projects — especially larger utility-scale projects — are planned and build over a multi-year timeframe. So there’s growing concern that some planned solar developments may be ineligible for the ITC.

 

That’s why the Solar Energy Industries Association (SEIA) is applauding “commence construction” legislation introduced yesterday by Sen. Michael Bennet (D-CO) and Sen. Dean Heller (R-NV). The bipartisan legislation would allow companies to qualify for the ITC if their projects are under construction before the law’s expiration date.

 

“This legislation is critically important to the continued growth of solar energy in America,” said Rhone Resch, president and CEO of the SEIA. “Senator Bennet and Senator Heller have been long-time champions of solar, which today is the fastest-growing source of renewable energy in the United States, providing jobs for nearly 143,000 Americans and pumping tens of billions of dollars into the U.S. economy. We applaud both of them for their strong, steady leadership. We also look forward to working with them on ways to create even more jobs, bolster local economies and protect our environment.”