Congress agreed on legislation that would extend the investment tax credit (ITC) for solar projects for two years and the production tax credit (PTC) for wind projects for one year. The full legislative package combines a $900 billion COVID-19 relief package and an omnibus spending bill for 2021 with tax extenders and energy policy changes.
The solar ITC would continue to apply at 26% of eligible basis for any project that begins construction by the end of 2022. It would step down to 22% in 2023, and down to 10% in 2024 for commercial projects with the residential credit ending that year.
