On Monday the U.S. Congress passed a spending bill that includes in it a two-year tax extension of the Federal Investment Tax Credit (ITC) for solar projects. The two-year extension of the federal ITC for solar projects will retain the current 26 percent credit for projects that begin construction through the end of 2022, rather than expiring at the end of 2020 as they would have under existing law. The ITC will fall to a 22 percent rate for projects that begin construction by the end of 2023 and then fall to 10 percent for large-scale solar projects and to zero percent for small scale solar projects in 2024.
The extension is a major win for the solar industry and for businesses looking to jump on the opportunity to go solar. There has perhaps never been a better time for businesses to go solar; there has certainly never been a lower upfront cost to go solar. As we continue to see the economy bounce back, we are quickly seeing an uptick in companies moving forward with solar projects. With this recent extension of the federal tax credit combined with local state incentives in Missouri, Kansas, Iowa, and Illinois, many of our clients are seeing a 12-36 month return on their investment, and nearly 80% of the upfront cost is covered by available incentives. If you’re interested in taking an educated look at how your business could benefit from solar call us at 816-265-1786 or email us at [email protected]