Investment Tax Credit (ITC) in the Inflation Reduction Act of 2022
“With long-term incentives for clean energy deployment and manufacturing, the solar and storage industry is ready to create hundreds of thousands of new jobs and get to work building out the next era of American energy leadership. This is a crucial window of opportunity that we cannot miss, and now Congress must seal the deal and pass this legislation,” said Abigail Ross Hopper, president of the Solar Energy Industries Association.
The bill, called the Inflation Reduction Act of 2022, includes $370 billion in spending for renewable energy and climate measures. This being a win for the solar energy and clean technology industries. As you may realize, no one has a political crystal ball and with possible upcoming administration changes in our country these credits could change overnight and could even disappear.
ITC 30%
The increase in the federal investment tax credit allowance has been the most striking point of the new bill. The bill provides for an increase to 30% in 2022, compared to the 26% offered in 2021, of the cost of installed equipment. As you can see, the time has come to act, as you never know when these benefits may be reduced or even repealed.
The investment tax credit applies to residential users of solar technology as well as energy storage, whether it is collocated or installed as stand-alone energy storage, allowing for the retrofit of a battery to a solar array while taking advantage of the credit. If the bill passes, the 30% credit will apply retroactively to those who have installed their system since the beginning of 2022.
There are various “adders” for the federal investment tax credit based on the type of organization, the use of domestic product, and the location of the project. According to ROTH Capital Partners, the investment tax credit can be as high as 50% on some projects if the appropriate add-ons are applied.
The credit also includes a “direct payment” provision. This would allow a developer with little or no tax liability to treat the amount of the credit as a tax overpayment, resulting in a cash refund of the amount of such overpayment to the developer.
Power Through Uncertainty
The benefits of solar-powered batteries go beyond your home. Keep the lights on, protect your family and secure your home office during blackouts. While we can’t predict how much or how often utility electric rates will rise or when exactly the power will go out, we can always count on the sun rising each day. Take charge of your electric bill and get control of your energy needs now and, in the future.
BrightEra Energy, one of the best solar companies in Florida.
With our solar panels you can make your dreams come true:
- solar panels to power your home
- solar panels to charge your electric car
- solar panels to heat your swimming pool
If you want to have your roof custom designed with Tesla’s beautiful, state-of-the-art solar panels (BrightEra Energy offers a free upgrade) click here and schedule an appointment today. https://bit.ly/BEAppointment
Source: https://pv-magazine-usa.com/2022/07/28/solar-investment-tax-credit-to-be-extended-10-years-at-30/