Despite months of intense lobbying, the solar industry comes up empty-handed in end-of-year spending legislation.
EMMA FOEHRINGER MERCHANT reports for gtm
After months of lobbying, the clean energy industry secured minimal tax credit extensions in the $1.37 trillion end-of-year deal U.S. lawmakers eked out this week to fund the government in 2020.
Of the possible extensions that may have been stuffed into the spending bill, wind was the only winner, and the industry secured just one extra year of incentives.
If the full deal wins congressional passage, as is expected, wind developers can now qualify for the production tax credit through 2020 — a year longer than anticipated. Developers qualifying projects in 2020 will receive 60 percent of the PTC if they bring those projects online by the end of 2024. Projects qualified in 2019 will still receive only 40 percent of the incentive.
That will benefit onshore wind developers at a time when their market would otherwise be under pressure. However, offshore wind developers, who typically opt for the Investment Tax Credit, would not get the same boost.
Meanwhile, lawmakers left solar— the industry that most aggressively fought for an extension of its ITC — and electric vehicles out of the deal. Storage, which lawmakers had sought incentives for in legislation like the November GREEN Act, will continue without credits.
Don’t miss stories like this Click for free updates
